Disruptive Payment Plans
The three legged Stool model is very essential for the feasibility of the employees. Financial planners have identified three most feasible sources of retirement income for the employees (especially low wage earning employees). Social security, employee pensions as well as personal savings are the three pillars of the three legged model (Powell et al., 2016).
The Yakuza Company delicately handles the work health and safety issues. However, the main area of conflict between the HR management and the employees is the payment related area. The Company have a complicated payment schedule. There are a lot of hidden deduction from the pay slip of the employees. The company on an average deducts more than 10% of the assigned salary of the workers against provision of various safety and healthcare advantages to the workers. Wagner III and Hollenbeck (2014) stated that the meso- organizational behavioural theories helps in maintaining the efficacy of the organizations as per the satisfaction of the employees. The disruptive payment plans might affect the smooth functioning of the processes as per the capabilities of the workforce. However, on an average the workers do not receive proper denomination of the payment deductions on any months.
The payment deduction policies do not allow the employees to conform to the last two norms of this theory. Firstly, the wage level of the construction workers is generally low. On top of that the revenue deduction would make personal savings and social security very difficult to achieve. In this context, direct salary deductions should be stopped by the company. This is an issue of Micro organisational level. The workers should be given preference regarding which policies they want to be implemented and the company should make the deductions at certain times of the year only.
This might result latter in to another issues like sudden hike in the employee turnover rate. This is actually a macro organisational issue as the main organisational outcomes would be hampered as an outcome.
The Amazon Company who had been engaged in the practice of paying lower than minimum wage in UK, has been forced to increase the standard of their wages after the stringency of the section 25s of the minimum Wage Act of UK. Similarly many companies who have been providing the workers with the minimum standard wage, are now being compelled to pay standard living wage and compulsorily provide more lucrative living wages along with standard allowances.
Connection to the Organization
In this context, the Harvard model of HRM can be highlighted. The model states that for the smoothness of work flow and reduction of employee management issues, there should be existence of multiple empowered stakeholders in the organisation. This implies that the employee rewarding and preferring strategies cannot be one sided. This model further states that there should be an HR map by virtue of which the HR managers should manage various HR issues and ensure smooth workflow (Paauwe&Boon, 2018). In context of the Yakuza, the work force includes employee from various ethnicities. As an impact there is high cultural biasness among the employees which results in grouping among the employees. The HRM department should have an in-house employee management system (DeNisi& Smith, 2014). Under this department, there should be a workplace surveillance committee that would look after the fact that the employee do not engage in cultural conflicts. In order to achieve this, an employee forum should be created which would look after the needs of the employees and make them learn he need to respect people of all ethnicities and origin and also make them realise the value of internal bonding among the workgroups. As, Beer, Boselie and Brewster (2015), states, this is very essential for the alleviation of the quality of organisational performance.
The second most critical issue existing in the company is discriminatory policies by the upper management. There is racial biasness existing in the workforce and the Human resource managers in spite of being aware of the problem, do not intervenes to solve the problem. Wagner III and Hollenbeck (2010) noted that the micro organizational behavioural theories helps in enumerating the different aspects of change in the organizational culture through avoiding situations of discrimination in the workforce.
This issue might pose the problems like violation of the workplace ethics laws of the country and as such the company might have to incur penalties. This is a meso-organisational behaviour issue.
The case example of the Southwest Airlines can be cited in this context. The company upgraded their revenue stream by developing the simple principle of putting the employees first. They keep their employees privileged and as an outcome, the quality of customer handling also developed. This helped the company to reverberate their sales channel again.
In this regard, the staff welfare model can be highlighted. According to this model, the employees look up to the employers not only for their salaries, but also for some emotional as well as psychological fulfilment (Halvorsen, Hvinden&Schoyen, 2016). For instance, if an employee punctually performs constantly for extra work hours for mitigating the lapse of extra employees, the concerned employee expects that he or she would receive at least some form of recognition or appraisal in the form of cash bonus or certification. The amount of money does not matter in this case, as Cohen and Fjeld (2016), states. On the contrary, the public recognition of the efforts is all that matters for the employees.
Discrimination and Diversity
The paucity of Fair work standards is a very subtle and implied issues within the organisation. The employees receive world class health safety benefits and because of which they have less health related issue and can enjoy a much healthier lifestyle. However, the main issue that the employees of this company face is that they are the victim of mis-scheduling of the work timings. The company do not have fixed worm schedules for the workers. They make the working chart up on the receipt of the orders from the concerned contracting companies. As an outcome, many of the employees have to work on over-shift hours (Cardy& Leonard, 2014). On other instances, many of the employees also have to work for higher soft hours and even on double shifts. In spite of the fact that there is a company policy that the employees would receive extra wok bonus based on the overtime that they worked for the company. The Company bears then expenses of the meals of the workers also. However there is a growing resentment among the workers that the issues results out of the biased HRM policy of the management. This is why strikes and work refusals have been a common problem in the company. This is a serious Meso-organisational behaviour issue.
In this context, the HRM of the Yakuza Company should take some added initiatives to recognise the employees who are working constantly for extra work hours. In case if an employee is giving such level of extra output, the management should take an initiative to acknowledge the effort. This can be done by reflecting the recognition through increment of the salary appraisal value or occasional provision of cash bonuses.
This issue would not result in to other related organisational challenges in the future.
Employee appraisal is a policy that is followed by many frontline companies. The example of Hell Pizza of New Zealand can be cited in this context. Freedom at workplace and informal work culture gives the company’s employees the motivation to work with dedication.
In this context the employee performance management model is most relevant. The model that states a good communication strategy is very essential for ensuring the smooth work flow within the company. In this context, it can be recommended that Yakuza should have centralised online chat software like “Hangouts”, by means of which they would be able to convey shift timings to the employees and other related information can also be shared on one common platform. This can help the company to keep track of which employees were notified about the shifts in prior and who did not know. As per Wagner and Hollenbeck (2010), this would prevent the employees from stating that they were oblivious about the shift timings in advance.
The organisation have a major problem in that they do not have a discretionary method of notifying the work schedules to the employees. They are called over the phone mostly and the shift timings are announced abruptly to communicate the work timings. This creates a problem for the employees certainly. On top of that the employees also lack punctuality and they often miss their shift timings and come lately for work. Influenced from the opinion of Ikeda (2018), it can be opined that this makes it difficult for the company to finish their projects within deadlines.
At the peak seasons of production, this issues can incur bigger organisational challenges like failure to handle client’s orders properly. This is a micro organisational issue, but with larger implications.
Many organisations have handled the issues of absenteeism by pertaining to the personal welfare policy. Pertaining to this process, the companies could ensure necessary employee engagement.
Reference List
Beer, M., Boselie, P., & Brewster, C. (2015). Back to the future: Implications for the field of HRM of the multistakeholder perspective proposed 30 years ago. Human Resource Management, 54(3), 427-438.
Cardy, R., & Leonard, B. (2014). Performance Management: Concepts, Skills and Exercises: Concepts, Skills and Exercises. Routledge.
Cohen, W. M., &Fjeld, J. (2016). The three legs of a stool: Comment on Richard Nelson,“The sciences are different and the differences matter”. Research Policy, 45(9), 1708-1712.
DeNisi, A., & Smith, C. E. (2014). Performance appraisal, performance management, and firm-level performance: A review, a proposed model, and new directions for future research. The Academy of Management Annals, 8(1), 127-179.
Halvorsen, R., Hvinden, B., &Schoyen, M. A. (2016). The Nordic Welfare Model in the Twenty-First Century: The Bumble-Bee Still Flies!. Social Policy and Society, 15(1), 57-73.
Ikeda, D. (2018). Staff Working Paper No. 732 Bank runs, prudential tools and social welfare in a global game general equilibrium model.
Paauwe, J., & Boon, C. (2018). Strategic HRM: A critical review. In Human Resource Management (pp. 49-73). Routledge.
Powell, J. M., Rai, A., Foy, M., Casey, A., Dabke, H., Gibson, A., & Hutton, M. (2016). The ‘three-legged stool’ a system for spinal informed consent.
Wagner III, J. A., & Hollenbeck, J. R. (2014). Organizational behavior: Securing competitive advantage. Routledge.
Wagner, J. A., & Hollenbeck, J. R. (2010). Organizational behavior. Securing competitive advantage. New York: Routledge.
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