Description of the Organization
Write about the Organizational Issues for Australia Based Automobile Company.
This report aims to discuss the importance of understanding the needs of the organization so that the leaders and employees can work collaboratively to improve the situation. Each of the organization has various types of issues which they solve within time in order to grow. In this report, the issues of the organization of a renowned automobile company has been discussed. There are several issues regarding employee turnover, losing reputation, customer dissatisfaction and losing shares in the market in the organization. Most of the issues that this company faces are associated with the internal problems among the employees and leaders. Thera re lack of support from the leaders for which the employees are not able to utilize their ideas and skills for which the production of this firm has been suffering (Claessens & Van Horen, 2015). Proper understanding of these needs is mandatory otherwise the leaders of the organization will not get the advantage in the competition and popularize their brand in the international market. This report has therefore, discussed the issues in detail and pointed out some of the recommendations so that the leaders can follow them and bring some changes in their organizations.
This company is an Australia based automobile company which has been working for twenty-five years both within the country as well as in the foreign markets. This company designs, manufactures, markets and distributes various ranges of vehicles and their parts. It has been doing business with more than 15 countries. It also sales its products in the countries where it does not have branches through import method. More than 35 thousand employees work with this organization in its 18 branches all over the world. However, this company has been suffering from various problems which can be easily solved by the management.
The organization faces some of the critical issues which are mainly originated from the employees, customers or even the supply chain. The organization operates both domestically as well as internationally hence the problems are innumerable but strong monitoring does not leave any manifestation to be identifying (Crane & Matten, 2016). First of all, the company’s senior leadership team does not have alignment and they operate from the top layers hence do not effectively collaborate. Moreover, there are always a tension as well as mistrust among the seniors which effectively radiates in all over the organization. This is the reason why they do not actually know what area of the organization may need leverage. Secondly, the organizational culture has been affected by the lack of bonding among the employees. They do not feel attachment with the organization hence a huge number of employees leave this organization each year. Thirdly, there has been a quality issue of the products for which the complaints from the customers are growing. There are no corrective measures taken by the upper management hence the issues are gaining size constantly instead of getting reduced. Finally, the market share of the company is also decreasing due to poor performance of the management in terms of production as well as increasing customer compliance for worsening service. Due to low customer relationship the profit is also decreasing (Flin, Lauche & Crichton, 2017). Overall it can be stated that the company has not been performing up to the mark and if this continues, it will have to close business in the foreign markets.
Description of the Problem
The problems as mentioned before are not only the problems of understanding the needs of the organization by the management or leaders but these issues are closely connected with the actual strategies as well as actions that these senior leadership team has been taking and communicating to the bottom layers of employees. The issues are present in every sector of the company that include production, customer service, employee management and miscommunication with the shareholder which are directly affecting the growth and reputation of the company in one hand and decreasing its annual profit.
The leadership team is occupying the top position where they do not work cumulatively hence the employees do not get motivated to feel the bond with one another. The CEO of the company being the most important person of the company cannot feel his employees to be valued so that they can contribute all their skills and knowledge for the improvement of the organization. The leadership style that he follows does not allow him to connect the dots from tactics to effective strategy, problems to solutions, vision to the results and ideas to the outcomes. Moreover, the leadership style that the CEO follows have no space for effective communication with the employees hence the employees do not get proper information about their duties, priorities and organizational changes (Forehand & Kotchick, 2016). The leadership issues gain more complexity as the leaders do not create scope for the employees to develop their own skills for professional growth so that they can get a clear path forward.
The issues that are associated with employee turnover have numerous facets first of which is related with the lack of engagement of the employees and their low morale (Hatch, 2018). The ambience of the company is full of uncertainty, complexity, volatility and ambiguity which affected the growth of a stable culture in the organization. Despite the fact that the leaders bring constant changes in the organization, the employees do not feel empowered to lead any type of changes they need to bring in the operation or speak truth about their capabilities or expectation from the organization (Martin, 2014). The reason of employee turnover is also related with the lack of integrity. These employees work in a team built according to the specialization of the employees but the leaders of these respective teams are not capable to motivate these employees so that they can bring collaboration among themselves to cater the needs of the customers or the shareholders.
Discussion of Problem
The company has been suffering from low annual profit as there are low customer support or support of the shareholders. The lack of trust that are found in the employees can also be seen in the customers (Prempeh, 2017). The lack of accountability in the system of the organization as well as its structure are not supportive to encourage the employees to serve the customers at their best. Moreover, the company has its shareholders in all over the globe hence there are difference in culture. However, the company structures do no support this cultural difference hence led to employee turnover in one and dissatisfaction of the shareholders and customers (Leigh & Blakely, 2016).
In order to improve the situation, the company can make changes in the procedure or strategies. First of all, the management need to cultivate a strategic connection among the leaders and the subordinates so that the employees also get chance to contribute in the company’s decisions making process (Nolan & Bott, 2018). In this respect the leaders can apply transformational leadership style as this will allow them to think through and list the chief stakeholders or influencers. This will help the company to keep a track of the needs. The leaders can cultivate collaboration among the employees which is an essence of democratic leadership style. Thus they can socialize their ideas and for support and create a scope for regaining the trust of the subordinates (Schermerhorn et al., 2014). As the chief problem is within the organization itself, the leaders need to strengthen their bond limiting conflicts either among themselves or with their employees. There need to be a both way flow of communication so that the employees do not feel to be only utilized but having an accountability to the organization (Cleveland et al., 2017).
Secondly, by synthesizing the strategies, system and functions with improved ideas, the company can bring changes in the production. The production managers need to have more independence so that they can work successfully with their teams without depending on their superiors for every decision making (Smith & McSweeney, 2017). Thus the employees directly attached with the product, can deploy their skills successfully and improve the quality of the production. Production and service are the chief outcome depending upon which the customers and the shareholders build trust on the company. The company if improves the internal environment successfully can easily reduce such risks thus can enhance their profit and number of shares in the global market.
Intervention
Conclusion:
Therefore, it can be concluded that the company despite had a good reputation for several years in both domestic as well as global market, has been suffering from losing position. After 25 years of successful business, the changes in the management and structure, the company has gradually lost its reputation among the shareholders as well as the customers. This has led to reduction in the annual profit and ranking. The problems of this particular company are mainly internal which is associated with the management process or leadership style because of which, the employees are leaving this organizations and shareholders are avoiding to do business with this company. The communication gap and lack of collaboration among the employees and management have affected the organizational culture. This has also harmed the quality of products in the global market. In order to solve all these problems, the leaders need to change their strategies and decrease gap with the subordinates. So that trust can be built up and profitability can be restored.
References:
Claessens, S., & Van Horen, N. (2015). The impact of the global financial crisis on banking globalization. IMF Economic Review, 63(4), pp.868-918.
Cleveland, M., Rojas-Méndez, J.I., Laroche, M., & Papadopoulos, N.(2016). Identity, culture, dispositions and behavior: A cross-national examination of globalization and culture change. Journal of Business Research, 69(3), pp.1090-1102.
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
Flin, R., Lauche, K., & Crichton, M. T. (2017). Learning from Experience: Incident Management Team Leader Training. In Naturalistic Decision Making and Macrocognition (pp. 129-146). CRC Press.
Forehand, R., & Kotchick, B. A. (2016). Cultural Diversity: A Wake-Up Call for Parent Training–Republished Article. Behavior therapy, 47(6), 981-992.
Hatch, M. J. (2018). Organization theory: Modern, symbolic, and postmodern perspectives. Oxford university press.
Leigh, N.G., & Blakely, E.J. (2016). Planning local economic development: Theory and practice. Sage Publications.
Martin, G. C. (2014). The effects of cultural diversity in the workplace. Journal of Diversity Management (Online), 9(2), 89.
Nolan, J., & Bott, G. (2018). Global supply chains and human rights: spotlight on forced labour and modern slavery practices. Australian Journal of Human Rights, pp.1-26.
Prempeh, E.O.K. (2017). Against global capitalism: African social movements confront neoliberal globalization. Routledge.
Schermerhorn, J., Davidson, P., Poole, D., Woods, P., Simon, A., & McBarron, E. (2014). Management: Foundations and Applications (2nd Asia-Pacific Edition). John Wiley & Sons.
Smith, P. L., & McSweeney, J. (2017). Organizational perspectives on rapid response team structure, function, and cost: a qualitative study. Dimensions of Critical Care Nursing, 36(1), 3-13.
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