Organizational Behavior Issues in Aussieco Essay

Aussieco, an Australian caller established as a small manufacturing and service operation attach to in 1962 is now a fully expanded beau monde with 600 employees. The company built its reputation on a single product holding 90 per cent of the Australian market in the 1980. everywhere the years the market holding has gone down by 30 percent in malice of the product being unique and company facing particular competition in the market (Jones,Gal, n. d) The downswing in Aussiecos performance is mainly due to issues with the companys counselling and organizational sort. organizational Behavior refers to the understanding, prediction and management of human behavior in organizations (Luthans,2010). It is the study of individuals and their behavior in a fiddle place. A companys performance and outcome mostly depends on its organizational behavior as it is an interdisciplinary field that includes sociology, psychology, communication and management. Aussiecos organizational behavio r issues can be explained finished Henri Fayols 14 management principles.Henri Fayols theory of administration and organizational behavior focuses on the individualised duties of management and managerial effectiveness which aussieco inadequacyed. (Fayol,1971). The company has inexperienced staff and no specialization as major high strength staff is friends and family without skilled knowledge. The executive managing director is the possessors nephew with no interoperable or industrial experience. The production supervisor is the production managers surmount friend who has little knowledge of the daily production tasks as he is a carpet fitter by qualification.Employees at the operative level are migratory labor mostly lacking formal qualification. On diversification, management failed to understand the changing market needs. Aussieco follows the power culture where control is centralized. The major motivational or campaign force is fear (Luthans,2011). Suggestions and ps ycheal preferences are not welcomed. The owner-chairman reacts in a strong negative air if any managers opinion 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 but the managers lack self-confidence and responsibility. On the exemplification of owner accepting run from a bad debt customer without consulting the general manager shows lack of authority for the manager. Owners dictatorial post and ignorance of modern trends hold back the dedicated managers to repair and suffer changes in the companys working, as they are either fired from the job or draw 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 goals and vales and lack of faith in the management all together leads to all the issues of Aussieco. During tiffin hours the preceden tial management and sales staff have access to unlimited alcohol in the workplace. fiction line workers underperform and hold back production with vague excuses. Subordination of individual interest everyplace the companys interest and goal is one of the major problems of Aussieco Employees overtime to get paid purposeless(prenominal) and not for productive outcomes.Also the senior programmer in spite of completing his work order uses his work holiday for personal matters. There is lack of equity and justice among the employees. The rule being everyone es directial vacate office during lunch break but exceptions for the senior management and sales staff that wipe out in the work place, operatives and other staff are allowed no food or drinks in the workplace. The migrant staff is treated tumefy and better than its own national staff. There are less internal promotions. High employee deformover, no perceptual constancy of tenure of military group is another major issue with Aussieco.To attain level best productivity of personnel it is essential to have a stable workforce, which Aussieco lacks. There are frequent mussiness 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 thus are not fully committed to their work. This further increases the companys costs of recruitment,selection and training. There is lack of motivation and maiden by the management for the welfare of the employees.There is lack of rewards, appraisal and bonus. The workshop roofs are without insulation and escapism during heavy rain, no doors and filthy windows point toward bad and unhealthy working conditions. This even gave a overtaking 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. Lack of structured work , irregularity in work and no proper accounts and records hold 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. One of the major reason for the organizational issues of aussieco is the employee attitude. Job 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 output (Luthans,2011).The aspects of job satisfication are not met by Aussieco. Employees of Aussieco are uneasy with the kind of work they get, the job provides less opportunities for learning and less responsibility. There is lack of remuneration and pay, less promotional opportunities, bad working conditions. This high leve l 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 thus 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 completion 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 developed this attitude because of the mechanistic treatment they receive and lack of empathy from management. autarky 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 unwelcomed. In this management style managers believe workers must be controlled to ensure maximum productivity (Luthans,2011). Aussieco s structure can be best explained by Douglas McGregors theory X. This theory represents an assumption 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 touch 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 engage toward staff and one way communication (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 mend industrial efficiency scientifically. He encouraged 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 selec tion, training and development of workmen and passively left them to train themselves. Managers did not supervise and provide instructions to the employees and there was no division of work between managers and workers. There was lack of specialization, standardized 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, increase 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 set about criticism of exploitation, mechanistic approach etc but in relation to Aussieco, the company needs to adapt current principles of Taylor ism for a better organizational working. To conclude Ausseicos major issue is organizational and management structure. The company should have a more humanistic and realistic approach with a right balance of authority and responsibility.