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  • Subject Name : Management

Galbenski Case Study

1. What would you do if you were the CEO and why?

If I were the CEO of the company Contract Counsel, I would have analyzed why the company is not growing as much as it should and would try to find the fault. I would sit with industry professionals to know the market in more details. I will look into the reports published by well-known sources that give information about not only the United States but also across the globe.Regular and frequent meeting with business consultants would also be an advantage. In order to make the maximum profit, it is necessary to expand the customers. To expand the company, the overseas business is considered to be impactful. Outsourcing is the new trend. Outsourcing is the way adopted by many companies to lower costs, improved efficiencies and the gain speed (Techtarget, 2019). Since the third party is involved, it would have the limited work the one which is being outsourced so, they are able to perform better. Senior management is always an integral part of decision-making in any organization (Gills, 2015). I would choose TCE theory for decision making. TCE stands for Transaction Cost Economics and it would be helpful for me because finding the contracts is extremely difficult so, it can be used for analyzing and selecting the outsourcing contracts (Vaxevanou, 2015). I would choose India because it works at low cost so it saves money and delivers high quality service.I wouldconsult for the recommendations from finance and operations before taking an action. As stated in an article, working backwards and decreasing cost with increasing more efficient operations can increase the profit margin (Barstow, 2019). For quantifying the benefits, I would firstly forecast the cash flow and plan the funding requests. I would analyze if the funding would prove to be beneficial in next 5 years. Any step taken without keeping in consideration all pros and cons of decision may raise a serious concern towards the existence of the business. Being a CEO and having the decision making power in my hands, I would embrace the technology because the idea behind the outsourcing in our company would be to collaborate other country and US employees over the web and being productive 24*7. This would even be beneficial for us as our service would be running for day and night.I would be flexible in analyzing the positive and negative aspects of it and working on it accordingly. The leading, guiding, directing and evaluating the work of other executive leaders is the responsibility of CEO (Heathfield, 2018). After keeping my idea forefront, I will have proper meeting with other personnel in our organization and would take their opinion into consideration. This is the good decision because the company is experiencing the fall and the rise above a certain point becomes difficult in the long run. It is inevitable for an established company to not take such a suitable measure to save itself from revenue flattening. The conceptual framework of outsourcing helps in taking decision for offshore outsourcing.

2. What organizational design changes would you implement?

Organizational design is a methodology that screens any dysfunction in the work flow, systems, procedure and structures step by step. It realigns them in such a way that it fits the current business goals and then develops plans to implement the new changes accordingly (Allen, 2015). The company aims at excellent customer services, clear strategy on expanding the business, increased profit, reducing the operation cost and becoming a successful company.

3. What changes in HRM would be necessary?

Human Resource Management (HRM) deals with the people working, culture and the environment of the company. It handles the issues related to the employee, salary, training, recruiting, managing and directing people (Griffith college, 20019).Human resource personnel establish systems for performance development, employee development and they keep the culture and environment such that the employee is willing to work with an organization and is able to serve the customers well. They help in making the code of conduct, policies and rules of an organization and makes sure that all adhere to it. With regard to this company, several changes in the human resource management need to be made after the outsourcing to India has been implemented. To maintain equilibrium between human systems and structural systems, HRM is required in any organization (Entrekin& Scott-Ladd, 2013). The necessary changes in HRM would be to make sure that the employees of both the countries are following the code of conduct. Since there is a cultural diversity in company, it is HR’s duty to make sure there is no discrimination and there is no effect of the diversity on the customers. He would maintain the environment and culture in a way that Indians feel comfortable working with the already existing US employees. He would make sure there is no technical issue while the employees are connected through web. The legal regulations will change that is the employee’s rightduring the transfer of undertakings in the case of outsourcing will reduce the ease with which management use to alter the employee contracts (Doellgast & Gospel, 2013). When outsourcing is undertaken, the implementation of new working practices is difficult with the older employees and the reduction in their direct labor cost is also difficult for HR to implement. The HR will have to coordinate with each and every employee irrespective of the time zone difference between India and US. The HR would bring the interviewed employees on board and make them familiar with the company’s policies and rules and regulations.

4. How would you bring about the necessary organizational changes?

The necessary organizational changes can be brought about by changing the work ethics, discipline and the code of conduct. The employees are the Indian citizens also so the entire company rules have to be changed. The work would be more cognitively complex and more team based and collaborative. The social exchange theory would be helpful in implementing the change. It is an essential concept of social psychology. There is a process of interactive changes between two different kinds of people so the social exchange theory deals with these social changes. Their fundamental concept is cost and rewards. Costs are negative and rewards are positive consequences of a decision (Social work degree guide, 2019). The company will now implement this theory to make the employees acquaintances. The installment of better web system, internet and the latest technology use will be helpful in dealing with both the counties employees. Since the Indian lawyers are very intelligent, motivated and extremely process oriented, the US employees skills needs to be sharpen accordingly. The employees need to be given the job security and they should be made aware of the terms and conditions. There would be changing pattern of work so, an organization would have the increasing pressure to be more competitive and customer focused. The communication and information technology breakthroughs, especially mobile technologies and the Internet that enable work to be separated from time and space would be enhanced (Heerwagen, 2019).Good social skills would be developed for team work and collaboration, relationship development and marketing, learning and growth. The marketing team would be made proactive in promoting the company and making the mass aware that the company is giving high quality at the cheap prices. The promotional team would promote how the company is shining light on the new way of business by outsourcing to India. The design team will be established that would design the customer requirements. The employees hired are highly skilled and motivated so the company is expected to experience the positive outcomes. The new psychological contract would be made to work the terms between the workers and employers.

References

Allen, R.K. (2015). What is organizational design. Retrieved from http//www.centerod.com/2012/02/what-is-organizational-design/Barstow, S.R. (2019). How to influence the CEO to consider expansion. Retrieved fromhttps//smallbusiness.chron.com/influence-ceo-consider-expansion-76146.htmlDoellgast, v., amp Gospel, H., (2013).Outsourcing and human resource management. Retrieved from https//digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgiarticle2234ampcontextarticlesEntrekin, L. amp Scott-Ladd, B. D. (2013).Human resource management and change Apractising managers guide. New York Routledge.
Gills, S. (2015). The business ethics twin-trackcombining controls and culture to minimise reputational risk. New Jersey John Wiley amp sons.
Griffith College. (2019). The importance of human resource management. Retrieved from https//www.griffith.ie/importance-human-resource-managementHeathfield, S.M. (2018). What does a chief executive officer (CEO) Do. Retrieved from https//www.thebalancecareers.com/what-does-a-chief-executive-officer-ceo-do-1918528Heerwagen, J. (2019). The challenging nature of organizations, work and workplace. Retrieved from https//www.wbdg.org/resources/changing-nature-organizations-work-and-workplaceHole, G. (2017).The importance of organizational design and structure. Retrieved from http//www.dr-glennhole.org/the-importance-of-organizational-design-and-structure/Plugge, A., Bouwman, H., amp Molina-Castillo, F. J. (2013). Outsourcing capabilities, organizational structure and performance quality monitoring Toward a fit model.Information amp Management,50(6), 275-284.
Researchgate. (2019). Conceptual framework of outsourcing. Retrieved from https//www.researchgate.net/figure/Conceptual-framework-of-outsourcing-decision_fig4_256130551Social work degree guide. (2019). What is social exchange theory. Retrieved from https//www.socialworkdegreeguide.com/faq/what-is-social-exchange-theory/Techtarget.(2019). Outsourcing. Retrieved from https//searchcio.techtarget.com/definition/outsourcingVaxevanou, A., amp Konstantopoulos, N. (2014). The Implementation of Outsourcing Procedure in the light of Organizational Reality.Procedia-Social and Behavioral Sciences,148, 478-485.
Vaxevanou, A., amp Konstantopoulos, N. (2015). Models referring to outsourcing theory.Procedia-Social and Behavioral Sciences,175, 572-578.

 

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