Organizational Behavior Issues in Aussieco

Topics: Management, Organizational studies and human resource management, Behavior Pages: 5 (1539 words) Published: January 12, 2011
Aussieco, an Australian company established as a small manufacturing and service operation company in 1962 is now a fully expanded company with 600 employees. The company built its reputation on a single product holding 90 per cent of the Australian market in the 1980. Over the years the market holding has gone down by 30 percent in spite of the product being unique and company facing little competition in the market (Jones,Gal, n.d) The downturn in Aussieco’s performance is mainly due to issues with the company’s management and organizational behavior. 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 work place. A company’s performance and outcome largely depends on its organizational behavior as it is an interdisciplinary field that includes sociology, psychology, communication and management. Aussieco’s organizational behavior issues can be explained through Henri Fayol’s 14 management principles. Henri Fayol’s theory of administration and organizational behavior focuses on the personal duties of management and managerial effectiveness which aussieco lacked. (Fayol,1971). The company has inexperienced staff and no specialization as major high authority staff is friends and family without skilled knowledge. The executive managing director is the owner’s nephew with no practical or industrial experience. The production supervisor is the production manager’s best friend who has little knowledge of the daily production tasks as he is a carpet fitter by qualification. Employees at the operative level are migrant 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 driving force is fear (Luthans,2011). Suggestions and personal preferences are not welcomed. The owner-chairman reacts in a strong negative way if any manager’s 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 authority and responsibility. On the instance of owner accepting order from a bad debt customer without consulting the general manager shows lack of authority for the manager. Owner’s dictatorial attitude and ignorance of modern trends hold back the dedicated managers to improve and bring changes in the company’s working, as they are either fired from the job or become 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 company’s goals and vales and lack of faith in the management all together leads to all the issues of Aussieco. During lunch hours the senior management and sales staff have access to unlimited alcohol in the workplace. Assembly line workers underperform and hold back production with vague excuses. Subordination of individual interest over the company’s interest and goal is one of the major problems of Aussieco Employees overtime to get paid extra 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 must vacate office during lunch break but exceptions for the senior management and sales staff that eat in the work place, operatives and other staff are allowed no food or drinks in the workplace. The migrant staff is treated well and better than its own internal staff. There are less internal promotions. High employee turnover, no stability of tenure of personnel is another major issue with Aussieco.To attain maximum productivity of personnel it is essential to have a stable workforce, which Aussieco lacks. There are...
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