Organization Behaviour Case Study

determination be tuckerr summaryIn this report, a case of Morgan-Moes dose stores allow be studied. The party is woeful from a difficult economy bureau, with stores macrocosm downsized and employees being force outed. There is a grand problem concerning employee indigences. Therefore, the human resource aggroup decided to change the instruction dodging, and they had conducted an investigate to test quintuple parvenuely designed computer chopines. The out fill in is analyzed ground on gross revenue revenues and role dollar volume rate, and the just about effective programs atomic heel 18 selected accordingly.At the same time, vituperative counting is applied in this report. The abut of the try out is reviewed, and several factors be added into the coveration. Meanwhile, two practical and theoretical info is countenanced relating to the ever-changing work force, the importance of destruction and didacticss, the construction of organisational ho rticulture, the employ fight and empowerment, the changing resistance, as thoroughly as the nicety and forthrightness of work place. Through these further analyses, a more(prenominal) comprehensive focal point system is suggested to Morgan-Moes drug club.Background instructionMorgan-Moes drug stores used to be the channelizeing family in the retail industry with the hard owning hundreds of stores. However, there has been a dramatic declining in revenues recently establish on a sharp decrease in the contributions manufacturing economy. The connection used to consider high-margin items as their major product, but they wee to switch their focus on low-margin commodities, and indeed the profit has been fallen rapidly. Out of frustration, the familiarity has to cut down the number of stores, and dismiss the employees.As the business going worse, there ar well-nigh negative influences on the employees. Because of the insecurity of their jobs, employees had course of instructioned a pessimistic military strength against their daily work. Besides, the lack of advanced nock and communication, as well as the insatiate severance payments for departing employees, had caused the laid-off employees to form a radical emotion of angry. In this way, the operative efficient of the daily operation was weakened, and the populace image of the federation has similarly been damaged.To spread with the changes and to solve those problems, Jim Claussen, vice president of homo Relations, determined to set a new direction for the ships company, and the human resource instruction team decided to transform their doing solicitude system. In order to come up the nearly effective management system, the HR team had come up with cardinal options for the company, and each individual carriage of the store is adequate to(p) to choose the roughly appropriate approach for their management purposes. An essay had been conducted, and the results ar analyzed in inside training in the following report.Experiment approachAs menti singled above, there argon quintuple programs designed for this prove (listed in the following tcap sufficient), and those programs dismiss be considered as the variables. Program nonpareil is designed to be the same as the previous system, with sacramental manduction little or no information program two and three provide employees with information that is controllable (sick vanish) or robustious (gross revenue and inventory replacement) and program quartet several(prenominal) and tail fin engage employees into the decision reservation go with employees providing suggestions for a better performance.Program No. ContentProgram 1Continues to prevail the course and providing employees with little to no information or opportunities for participation.Program 2Tracks employee absence and sick leave and shares that information with individual employees, giving them feedback.Program 3Tracks gross sales an d inventory replacement rates crosswise shiftsProgram 4Tracks the same information as Programs II and III. Managers communicate it in weekly bases, during which employees make suggestions for improving performanceProgram 5Keeps the idea of cogitateing, but doesnt provide employees with information about their mien or company remuneration To compass a comprehensive analysis of this experiment, we contain to identify what the in subject and strung-out variables are. harmonise to Sechrest (1982), freelancer variables refer to factors of input which are able to be controlled, while dependent variable indicates the output or vector sum which is determined by the dependent variable.In this case, the sovereign variables rely on both the management and employee perspectives. Analyzing from the management perspective, the information manduction train, the empowerment aim and management style get out all have an influence on the exits. On the former(a) hand, factors of employee s should excessively be considered as independent variables. For example, the employment age, their positions in the company, the operative condition or attitude go forth all affect the experiment results.Our dependent variables focus on the outcome of those programs that we deficiency to measure, and it can be sort out as the average employee disturbance rate, the sales profit, and the monthly staff speak to time. Those dependent variables are determined by the independent variables, and the change of each independent variable forget have an influence on the dependent variables and experiment outcomes.Finding and discussionThe experiment was conducted at heart 299 retail stores, and the results are listed in the appendix. As can be observed, program 4 and five should be regarded as the almost effective methods in generating revenues and reducing turnover.First, we will focus on the revenue and salute aspects. As listed in thefollowing map, program unitary and two ha ve a relatively low profit per month, which indicates that the sales revenue of stores using program one and two is set about than those applying program quaternary and five. In an other(prenominal) words, stores which engage employee into the decision making dish up are able to overprotect more sales revenues in general. It can be seen that employees suggestions could abet the company to enlarge the profit and come through a better performance.Even though program quad and five had generated the highest revenue during the experiment, they in like manner caused the highest salute of staff time. On the other hand, since program one did not charter to make any changes, there will be no staff terms. provide cost message that the employees had to take some of their regular workings hours into the information sharing and cerebrate meeting, so that the opportunity cost of those hours must be considered as well. Therefore, we penury to deduct those costs from the revenue to get the net profit for each program. As can be seen from the following chart of net profit, program four and five still have a relatively higher profit of $9,580 and $11,250 than the other programs by and by remove the staff time cost from the revenues.Another measurement is the employee turnover rate, which represents the percentage of employees who either quit or terminate their jobs. To abide by the companionshipd employees and to reduce the time cost of training newly recruited members, it is better for the company to keep a lower employee turnover rate. concord to the experiment result listed in the following chart, program four and five have a relatively lower rate of employee turnover of 17% and 21%.On the other side, program three has the highest turnover rate, following by program one. It can be figured out based on the results that a high level of employee engagement into the decision making process will have a convinced(p) influence to reduce the employee turnov er rate. If the employees opinions and ideas are support and respected in the company, they are more willing to hold themselves into their working process.As analyzed above, it is obvious that methods four and five are superior to the other methods, because they generated higher profits and lower employee turnover rates. On the contrary, program one is the least effective management system with regarding to a lower sales profit and a higher employee turnover rate. In this way, the company should be hiked to modify their sure management system, and systems like program four and five should be boostd to engage the employees into the decision making process.However, there are some concerns regarding to the experimental approach. In this experiment, each director was able to select the program which they think might be the most appropriate for the retail store. As can be seen in the following pie chart, almost one third of the jitneys choose program one which is to keep the statu s quo. Even though a relatively large number of managers choose not to change, it does not inescapably mean program one is a better solution. However, more than half of the managers are willing to bring changes into the organization and to invite empowerment to employees. Meanwhile, program four and five are approved to be the more effective methods based on the experiment results, so the majority of managers agreed with our conclusion.Based on various management styles, managers would have unlike preferences, and therefore it is possible that the decisions were made with personalized biases. In this way, the impartiality of the experiment would be negatively affected. To monitor the whiteness of the experiment, a randomly designate strategy could be recommended instead of the self-selection process. Critical analysis apart from the data and information that has been collected in this experiment, there are some other issues for the managers to consider. It is universally know t hat the world is continuously changing, and if a company wants to be the leading organization in the rapidly changing environment, it has to be adaptive and creative to fit into the new occurrence.In this case, the manager had made his effort adapting to the flowing situation by designing the opposite programs. However, the exigency ofdiversified workforce (Langton, 2012) should in like manner be seen as one of the new realities. In is undeniable that the employment of experienced workforce is more dependable than young workers, because they have accumulated more professional companionship about the work.However, in the current unpromising economic situation, the company might want to hire more diversified workforces. It will not only serve the different need of various customers, but also could generate more fresh ideas during the brain coerce meeting. Meanwhile, with diversified workforce, the employees will generally increase their skills and capabilities by sharing their k nowledge.Apart from adapting to the changing situations, the organizational goal and direction are also essential when making organizational decisions and motive employees. Specific and achievable goals could improve employees performance and help the management process. According to Langton (2012), a well-designed company goal is able to provide a direction for employees actions, regulate their behavior and efforts, as well as increase their persistence during their working process. Meanwhile, goals and directions are also able to crap the development of administrative strategies, and it will dramatically increase the motivation of employees. Accordingly, the Morgan-Moes drug stores should primarily design a ad hoc goal to direct the employment behaviors.As Lencioni (2012) represent in his book, once a company has accomplished setting their mission and goals, which he refers to as the clarity, those directions must be emphasized and reinforced during the daily buns of the ope ration process. In other words, the tasks and jobs assigned to employees must be designed based on the major objective and goal of the company. Meanwhile, award and appreciation systems should be provided to employees to promote their motivations. Fairness and equity must be considered when offering employees rewards, and the rewards should be in bond with organizational goals and personal performance.In addition to organizational goals and objectives, organizational culture and value should also be created as a heart factor within the organization. A agreeable culture could get employees to be industrious into the organization,and it will also have a positive influence in the employees job satisfactory level, which might lead to a higher level of motivation. As showed in the following chart (Round the measure Resources, 2012), a sustainable organization should pass water up a solid system around an appropriate working culture, with other aspects constitute a framework steer the business process.At the same time, employment involvement and empowerment strategies must be enforced within the organization. Those strategies suggest a company to move some of the power from managing level into the general employee level, which indicates that employees should be inspired and encouraged into the decision making process. Based on Herzbergs motivation-hygiene theory (Langton, 2012), employees should be effrontery greater responsibilities and more power to conception and control their work, and their motivation would be increased.As in this experiment, program four and five are designed with empowerment activities, they engage employees into the brainstorm meeting to communicate the current situation and to generate ideas and suggestions of what they can do to for a better development of the company. Judging by the results, it is testified that giving employees more responsibility is able to improve the sales profit, reduce employment turnover rate and increase the boilers suit performance level of the organization.When bring changes into an organization, not all employees are willing to nip the transforming. There will be a resistance power caused by the business organization of the unknown and uncertain future. As Torben worm (2011) illustrates with his change cycle, employees will experience several stages before they finally immerse the conditions.During the changing process, it is significant for managers to have a clear communication with the employees, and the directions must be clear and precise, so that the employees understand the current situation and their expectations. Meanwhile, managers must be fair and impartial to maintain the organizational justice, in which way a satisfied working environment couldbe established, and the employees are trust and they will be more act to the organization. Conclusion and recommendationAccording to the experiment results, program four and five are considered to be most effective beca use they are able to generate relatively higher net profits and lower employment turnover rates. It means a regular brain storm meeting is beneficial for the improvement of organizational performance and employment engagement. Therefore, managers should actively encourage employees to be involved into the decision making process.However, considering the current business situation, the managers should also drag more diversified workforce, and different kinds of employees should be hired. Besides, a clear goal and direction should also be created by the management level to guide the behavior of employees. Apart from that, a favorable organizational culture should also be established to form an instructional working environment. At the same time, actions of employ involvement and empowerment should also be taken to increase motivation and employment responsibilities. During the management process, organizational justice and fairness should also be paying attention to, so that employee will be committed to the organization.