Maintaining Organizational Health
Discuss About The Compliance Maintaining Organizational Health.
One of the major techniques that can be used in ensuring the employee engagement in the process of compliance is maintaining the organizational health index. This refers to the maintenance of the health standard of the internal stakeholders. The more effectively health of the employees can be maintained, the more will be their management in the workplace (De Smet, Schaninger & Smith, 2014). They will have more positive vibe in their workplace. In addition, maintaining the health index in the organization will also ensure that employees are mentally and physically fit enough to comply with the safety and risk standards in their workplace.
Another major technique of ensuring the employee engagement in the process of compliance is initiating 360 degree feedback management system. Fonterra is having number of hierarchy levels in their organization and thus initiating the 360 degree feedback management system will help them to gain and reviews from the side of the employees (Bracken & Church, 2013). In addition, initiation of the 360 degree feedback mechanism will help to gain feedback from different stakeholders. Thus, the more effective will be the generation of the feedback from the employees, the more beneficial will be for the higher level management to determine level of compliance of the employees.
One of the major strategies that can be used as motivating tool for the organization is providing proper monetary benefits to the employees. This is due to the reason that the core objective of the employees in working in their workplace is earning money (Aguinis, Joo & Gottfredson, 2013). Thus, offering proper financial benefits to the employees will help to enhance the level of motivation of the employees. They will feel more motivated in their workplace if they are provided best in the industry financial benefits. The high level of motivated employees for Fonterra is mainly due to the proper financial benefits offered to them. Another strategy that can also be used in motivating the employees is increasing their involvement in the decision making process (Amah & Ahiauzu, 2013). This is due to the reason that if the employees can be empowered by involving them in the decision making process then they will have more positive impression of having more value in the organization. Thus they will further get motivated in their organization. In the case of Fonterra, employees are empowered enough to initiate decision making process by own. Apart from motivating them, this also helps Fonterra to have more involvement of the employees in the workplace.
360 Degree Feedback Management System
With the help of providing financial benefits to the employees, employee participation will further get increased in the process of compliance. This is due to the reason that the more will be the motivation of the employees due to having proper financial condition, the more efficiently they will adhere to the compliance process. If the employees are having the impression that adhering to the compliance process will help them to have more favorable economic condition, then they will be more motivated to comply (Ko & Hur, 2014). In addition, it should also be noted that employees will comply with organizational rules and regulations only when they will be paid for that. In this case also, providing financial benefits will motivate the employees to comply with the process. On the other hand, if the employees can get involved in the decision making process, then they will have more idea and understanding about the required and important compliance process. Thus, the need of externally communicating the employees about the compliance process is not required. In addition, it will become easier for the employees to adhere to the compliance process if they are being involved in the decision making process.
Compliance management is the process of covering all the internal stakeholders within the set rules and regulations of the organization. In the case of Fonterra, they are having pre-determined set of standard rules and regulations that should be followed all the internal stakeholders across all hierarchy levels. Thus, they are also having the importance of involving different set of stakeholders in the process of compliance management in order to understand their opinion and feedback (Boella et al., 2014). It is important to maintain and develop strategic business relationship with all the relevant stakeholders in the compliance management process due to the reason that there will be different views of different set of stakeholders regarding the compliance management. This is mainly due to the reason that there are diverse approaches being followed by the stakeholders in adhering to the organizational rules and regulations. In addition, it should also be noted that the different stakeholders are having set of business interests with Fonterra (Hashmi & Governatori, 2013). Thus, it is important for Fonterra to have the strategic business relationship with that of the each and every stakeholder in order to gain the insights about their objective and interests. This will further help the organization to design the compliance management process that will be acceptable to all the employees.
Monetary Benefits and Decision Making Process as Motivating Tools
In the current business organizations such as Fonterra, one of the major and most important stakeholders is the regulators. This is due to the reason that in the current business scenario, there are number of rules and regulations in terms of the legal obligations are being set by the government and other regulatory authorities. For Fonterra, it is important for them to adhere to the business standards being set by the government of New Zealand (Ruggie, 2014). Thus, it is important to involve the regulatory bodies also in the compliance management due to the reason that they are the one who sets the foundation of the organizational rules and regulations to be designed further.
Auditors are another set of important stakeholders for the contemporary business organizations. This is due to the reason that especially for the pubic limited organizations such as Fonterra, it is important to have the clearance of the auditors (Kim & Park, 2013). They help the business organizations in setting the rules and regulations for the financial transactions. Thus, auditors are the one who set the rules regarding the financial matters in the organization. In the course of compliance management, it is important to have the view of the auditors.
Employers are the one who set the rules and standards in the organizations and that to be followed by the employees. In addition, it is also being noted that employers are the key responsible stakeholder who gain the insights from the other stakeholders and set the approach of the compliance management. They are also responsible to set the rules and regulations for the employees to follow in the organization.
Managers are the one who are responsible for the managing the daily activities in the organizations. They are the core stakeholders who oversee the compliance level of the employees with the organizational rules and regulations. The rules, regulations and legal obligations are being set by the employers but they are being implemented by the managers in the real world situation. Thus, managers are having the importance in implementation process of the compliance management.
Board of directors are also important an important stakeholders in the compliance management process due to the reason that the rules and regulations being decided in the organizations in the compliance management are to be approved by the board of directors (Kumar & Zattoni, 2013). Thus, they are responsible to initiate the compliance management process in the organizations. In the case of Fonterra, the rules and regulations being set in the internal management and the rules being followed by the employees and other stakeholders are being approved by the board of directors.
Different Stakeholders and Compliance Management
Professionalism refers to the required skills and attributes for a certain profession being expected from the professional. In terms of business organizations, Professionalism is having different set of meanings and definitions (Evetts, 2013). This is due to the reason that business organizations are having the requirement of different professional activities. All these activities demands different and diverse set of skills and attributes from the professionals. Thus, In terms of the business context, Professionalism refers to the different skills and attributes of the employees required and expected in the organization.
One of the major attributes of Professionalism is attitude. This refers to the point of view or point of thinking of a particular individual. Attitude determines the thinking approach and mentality of the individuals against a certain incident (Greenwald, 2014). In terms of the Professionalism, attitude refers to the thinking approach of the employees and other internal stakeholders in their workplace and against the rules and regulations of the organization. Qualities are another important attribute of compliance management. This refers to the skills and expertise of the employees that can help the organizations in gaining competitive advantages. Qualities are also considered as an important element of Professionalism due to the fact that it is the expertise and the skills of the employees that determine the effectiveness of Professionalism of the employees in their workplace. Behavior is also one of the major elements of Professionalism (Boer & Fischer, 2013). This refers to the approach of the stakeholders towards others. In terms of the business context, it is important due to the reason that employee behavior determines the effectiveness of the internal organizational environment. In the case of Fonterra, behavior of the Professionals also determines the effectiveness of the organization in providing the service to the customers.
Professionalism is important not only to determine the organizational effectiveness but also in ensuring compliance and effective performance of the organization. This is due to the reason that the more will be the Professionalism of the internal stakeholders in their workplace, the more beneficial it will be in enhancing the organizational performance. If the internal stakeholders are effective enough in leveraging their skills, expertise and behavior in creating competitiveness of the organization, then the performance of them will automatically get increased (Chinomona, 2013). On the other hand, if the internal stakeholders are Professional enough in their workplace then they will more likely to comply with the organizational rules and regulations.
Regulators, Auditors, Employers, Managers, Board of Directors and their Role in Compliance Management
Ethical behavior in terms of the business organizations refers to the honesty being maintained in the organizational process and affairs. Ethical behavior can be termed from different organizational perspectives (Ford & Richardson, 2013). This is due to the reason that ethical behavior can be determined from different organizational process and practices. For instance, ethical behavior for Fonterra refers to the service provided to the customers and managing the suppliers. Thus, in case of Fonterra, ethical behavior is the honesty being practiced by them in dealing with their external and internal stakeholders.
Adhering and obeying to the law is one of the major aspects of ethical behavior by the business organizations. This is due to the reason that any business entity should follow the law of the land in doing their business. Legal regulations are being initiated by the regulatory bodies in order to maintain a certain standards. Thus, the more effectively legal rules and regulations will be followed by the business organizations, the more will be their standard of ethical behavior. For instance, if Fonterra can adhere to the legal standards effectively, then it denotes that they are maintaining the ethical behavior in the firm.
Daily transaction is one of the major elements of the business organizations and involves financial and other operational transactions. Business organizations are having different set of rules and regulations to be followed by the internal stakeholders in daily business transactions. Ethical behavior in terms of honesty in dealings refers to truthful process of transactions (Welsh & Ordonez, 2014). This enables to have the equal opportunity for the all the parties involved in the transaction. In addition, compliance management of the organization also covers the rules to be followed in dealings. Thus, effective implementation of the set of rules and regulations in the compliance management will ensure that ethical behavior is being maintained in daily dealings.
iii. Showing respect is also one of the major elements in maintaining the ethical behavior in the organization. It is important to have the provision in the compliance management about the importance of showing respect to the individuals. This is due to the reason that if the concept of mutual respect does work in the organization, then the internal working environment will not be ethical as well as favorable (Oyeleye et al., 2013). It is also important to show respect to the societal standards. This is due to the reason that it is important for the business organizations to comply to the social norms and traditions of the society where they are currently operating. Showing respect to the social standards helps the business organizations to maintain their ethical behavior in the surrounding environment. In addition, it is also to be noted that the more will be the ethical behavior of the organizations in maintaining the societal standards, the more will be the goodwill and positive word of mouth in the marketing and surroundings. On the other hand, it is also important to maintain the respect towards the institution (Grover, 2014). Institution refers to the regulatory bodies, government and the organization itself for the stakeholders. This is important due to the reason that showing respect for the superior will help to follow the ethical behavior in the organization. This will also enable the subordinates to follow the ethical vision of the superiors.
Professionalism
It is important for the organizations such as Fonterra to ensure that operational practices of their business are environment friendly due to the reason that ethical behavior also covers the environmental factor. In addition, the compliance management should also include the provision for environment friendly operational practices due to the fact that Fonterra is very much dependent on the nature and environment for sourcing of their dairy materials (Kumar, Jain & Kumar, 2014). Thus, it is important for Fonterra to ensure that their operational practices are complied with the environment safety standards and are causing no harm for nature. This will also ensure that Fonterra will be able to enhance their societal behaviors by taking care of the surrounding environment.
For the contemporary business organizations, it is important to consider the expectations of the society also apart from their economical objectives. This is the reason behind the initiation of the corporate social responsibilities by the current business organizations (Servaes & Tamayo, 2013). Thus, Fonterra should also include the consideration of the community expectations in their compliance management process. They should have business strategies that will have both economical benefits and societal benefits for the communities. This can also help Fonterra to gain more goodwill and brand value in terms of their goodwill in the market.
In the current business scenario, it is also important to ensure that management practices are sustainable enough. This is due to the reason that if the management practices are sustainable enough in the organization, then the entire organizational approach will also become sustainable covering all the stakeholders (Stewart & Gapp, 2014). In terms of the compliance management, involving the sustainable management practices will help the organization to set up certain rules and regulations for the key internal stakeholders. This will ensure that all the internal stakeholders are following the stated rules towards achieving the sustainable management in place.
Reference
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