The objective of the report is to critically analyze the problems faced by the organization. The overall project report focuses on the issues related to the organization. These issues are analyzed critically and discussed in brief with their effects on organizational culture and behavior of employees. The problems discussed in the report are the nature of work and its management and problem in structuring project work. The report has also analyzed these issues with the opinion of different authors and their points of view. Organizational structure and financial issues are related problems in the organization, faced by top management and their effects on employees and work culture of the company is also discussed in the issues of the project report.
Problem with Nature of work and its management Low wages
Problem with Structuring project work functional organizational structure
This project report is the basis for the solution of two ideal issues in an organization. The organizations in the competitive environment are trying to sustain by providing effective and efficient products to the customers. They are trying to sustain in the market by adopting various strategies and tools. On the other hand, these organizations are also dealing with the internal issues of the company (Hayes, 2018). The companies are solving problems related to the projects, internal environment, and the conflicts between employees. Apart from that, there are also many other issues related with the manufacturing of products in an organization. Some of the issues are the nature of work and its management and structuring project report. The project report consists of the organizational structure of ABC, critical analysis of two problems, one nature of work, and its management and second structuring project work.
ABC (the name of the company is hidden due to confidentiality purpose) a multinational company started its business in the year 2002 in Colorado states of the United States of America. The company has a main business of manufacturing and designing of such footwear which can be sold to different age groups of people. It is selling its shoes in more than 100 countries and now admired as the global brand in the world within the last decade. ABC Company has made its place in the retail industry in the global market. Due to the immense growth of the retail industry, many organizations have started their business in the last 20 years, and one of them was ABC Company (Reinartz et al. 2011). The shoes manufactured by the company have their signatory closed-cell resin material known as croslite. The company also offers comfortable shoes with bright and joyful colors to attract the customers towards their brand. They also provide various features in their product like slip-resistant, lightweight and odor-free shoes. The crock (type of shoe) shoes made huge success among different types of customers, as these shoes met their expectation of all-in-one shoe. The Chief Executive Officer Mr. XYZ is the key person behind the success of the company at a global level. The immense success of the company has also helped to build a strong network with clients and retailers, which results in the development of an efficient supply chain and logistics. The company has a wide network and great management in the organization. However, the company is facing issues with the nature of the work of the employees and its management. It is also facing problems with structuring the project work for the manufacturing and planning of the product.
The work plays an important part in the lives of people, as they are contributing their time and attention to it which helps in generating a sense of value and identity. It also shows how people experience their lives at the place of work. Work time and personal time have always been synchronized by a person and it has become like a cycle, in one's life. The nature of work refers to an employee's work that is, what he is doing and how he is doing those things. It is changing very quickly and it is very dynamic. The nature of the work refers to the related aspects of the company's primary mode. It has four aspects first one is the profession, the second one is content of work that is what people do, and how they do it and what skills they have. The third one is related to the social, organizational, and institutional context. The fourth is the way the work affects and it is related to the other aspects of life, such as the standard of living, the company's perspective for the workers, their family and social life and its effect on a persons status and social-esteem.
The change in the nature of work and its management in the company is a big problem in organizations this type of issue disturbs the environment of the company. One of the major issues in the nature of work and their management is a change in the nature of work (Burke, 2017). The changes which are taking place in the company, its environment, working process, and majorly in the manufacturing process of the organization can affect the life of an employee. Other problems in the nature of work are technological advancement, low wage jobs, imperfect workplace, and invisible boundary of work between humans and machines.
According to Meer and West (2016), the low-wage job has become an important issue for labors in the organization in many countries. The low wage jobs issue is a wide issue in the market and it is not beneficial for employees as well as for employers. An individual can experience difficulties in a low wage job, as it would not be able to fulfil their basic needs and can also negatively affect productivity due to low motivation levels. In addition, Jardim et al. (2017) reports that in the industries the workers are being offered the minimum rate. The price paid to them against their job is the floor price in which worker may not agree to sell their labors. The author also agrees that due to this issue poverty rate and unemployment rate also increases. This can also motivate an individual to frequently change the job which may result in unemployment or low-pay to no-pay cycle.
The literature further defines the low wage workers condition and the issues related to it. According to Huttunen et al. (2013) there are two main methods to define a low wage job, first is a low wage job worker is a person who earns less than two third of medium hourly rate of work of a full time work. Second definition compares the wage rate with living cost of a person that is a person who is earning the money is efficient for fulfilling his local or day to day needs. Contradicting the research of Huttunen et al. (2013), the research of Clemens and Wither (2019) reports that effectiveness of low wage job depends on many factors like extent of protection the employer can afford for the employees. The employer set an acceptable level of lower wages with the insurance schemes provided to the employees and their family. Low wage jobs are also provided in case of unskilled labours or inexperienced employees to whom training is important, in which the employer is investing money. Moreover, the research of Dube et al. (2016) concluded that the low wage jobs in any industry is offered to the ground level workers in the manufacturing unit. The low wages are offered to them due to their inexperience. However, the research of Dube et al. (2016) has been contradicted by the research of Mosthaf (2014), which concludes that for the manufacturing of any product, the company requires high skilled workers, without which the quality of the work can be effected.
The low wage job is also an issue identified in the ABC company. The workers in the organization are experiencing problems to meet their and theirss family needs. In addition, the workers are also demotivated to work for the organization, which is effecting their performance and the effectiveness of the organization. This condition of the workers in the organization was also mentioned in the study of Huttunen et al. (2013). This can also be a reason behind the low retention rate of employees in the manufacturing unit of the company. However, to manage the retention rate and the low wage employees, the organization can arrange for a training program in which the unskilled labors will be trained so that they can be able to improve themselves, increase the productivity of the organization and thereby, there income can be increased in the future. Moreover, the organization can also introduce the protection plans for the workers and their family, which can increase the satisfaction level and also the retention level of the employees in the organization (Clemens and Wither 2019).
The organizational structure of a company plays a vital role in developing strategies and analyzing them for the effective productivity in the organization. Structure of the organization always influences management of the project. If the structure of management has not been revised from many years, then execution of project will not be effective and their might be issues related to the management of the project works. However, if the structure of management has changed repeatedly and the policies and rules are being revised continuously by the management, then completion of the project work can take much time and the efforts to complete the project will be more. Structuring a project refers to developing a plan for the current project which will be functional in the organization. ABC Company is a shoe and footware manufacturing company that produces shoes with best quality of raw-materials. Structuring a project work for manufacturing, marketing and selling the product involves hectic schedules, various resources, involvement of different department, planning of developing plan and execution of the plan. The process of structuring a project is very complex. This complex process result in development of numerous issues while development of the plan. One of the issue identified in the organisation is the functional organisational structure which keeps changing, due to which the policies are being updated regularly and the completion of the work takes time.
According to the Albers et al. (2016), a manager is always responsible for the functional development or operations of his department, that means each departmental manager is responsible for their departmental work as well as the issues in the department. The operation of functional structure is complicated and difficult to understand by everyone. An organisation with the functional structure creates a boundary around their department which results in defining the responsibilities of each employee. Ashkenas et al. (2015) also reports that it develops specialist quality in a worker and not a generalist. A person who is specialised in their field of works, cannot perform work beyond their specialisation. This can result in delayed decision making. Moreover, according to Jones (2013), one of the issues in structuring project work may be functional organisational problem, but this concept is utilised only in larger companies and not to smaller companies, which has large number of departments. In addition to this, the research reported that when different departments work together, it can result in delayed decision making due to poor coordination among them. This issue sometimes bring havoc in work places and stops the project being executed.
Andrew M. Pettigrew (2014) states that due to functional organisation the people or employees of different departments are not able to communicate with each other and it decreases the innovativeness and flexibility to work (Pettigrew 2014). Sometimes this lack of coordination and innovativeness effects the productivity of employees. The researchers have stated different statements but their point of views on the problem is same. Their perspective is similar on account of functional organisational problem but their factors of problems are different. From the literature, it can be concluded that the functional organizational problems occur when there is lack of coordination between the works of different departments. However, the research of Ahmed (2017) reports that the departmentalization is important in the organization as it helps in better management and incorporating the changes related to the consumer needs, regulations, technological changes and others. It is also important for the evaluation of the employees performance and supervision of the work done in each department.
In the organization ABC, the departments are divided between the department like engineering, human resource, planning and policy, IT and finance. Here the problem occurs when the work is divided between various departments and one department people does not have access to other department people beyond their functional division (Halevy, et, al 2011). When there is lack of coordination between the departments or they do not have authority to contact them, then this result in effecting the progress of the current project plan. ABC organization is the one of the biggest companies with global market position and different manufacturing plans. It has many employees and different teams working together. It is possible to have conflicts between the team members and employees due to the functional organizational structure. However, the functional organizational structure is significant for the incorporation of changes and supervision of work done by each employee. Moreover, as the organization is experiencing issues related to the poor coordination, the department heads can arrange a meeting and come up with a solution as one group.
The overall project report is based on two problems, nature of work and its management and problems in structuring the project work. The issues related to the nature of work and structuring of the project work are being discussed in relation to the ABC organization. In the organization, the employees were getting low wages which resulted in low retention and lower satisfaction of employees. The other issue concludes that while structuring a project work in the organization the employees face problems in coordinating with different department and this result in conflicts between the employees of different departments due to departmentalization. The literature has concluded the positive and negative perspective of these issues. However, the company can introduce the training sessions and family protection plan for the low waged employees and also conduct intra-departmental meetings to improve the coordination among the departments.
Ahmed, M.A., 2017. The Importance of the Organizational Structuring and Departmentalization in Workplace.The Journal of Middle East and North Africa Sciences,10(4086), pp.1-9.
Albers, S., Wohlgezogen, F. and Zajac, E.J., 2016. Strategic alliance structures An organization design perspective.Journal of Management,42(3), pp.582-614.
Ashkenas, R, Ulrich, D., Jick, T. and Kerr, S, 2015.The boundaryless organization Breaking the chains of organizational structure. NJ John Wiley amp Sons.
Burke, W.W., 2017.Organization change Theory and practice. Sage Publications.
Clemens, J. and Wither, M, 2019. The minimum wage and the Great Recession Evidence of effects on the employment and income trajectories of low-skilled workers.Journal of Public Economics.
Dube, A., Lester, T.W. and Reich, M., 2016. Minimum wage shocks, employment flows, and labor market frictions.Journal of Labor Economics, vol.34 no3, pp.663-704.
Halevy, N., Y. Chou, E. and D. Galinsky, A., 2011. A functional model of hierarchy Why, how, and when vertical differentiation enhances group performance.Organizational Psychology Review,1(1), pp.32-52.
Hayes, J, 2018.The theory and practice of change management. New York Palgrave.
Huttunen, K., Pirttil, J. and Uusitalo, R, 2013. The employment effects of low-wage subsidies.Journal of Public Economics,vol.97, pp.49-60.
Jardim, E., Long, M.C., Plotnick, R., Van Inwegen, E., Vigdor, J. and Wething, H, 2017.Minimum wage increases, wages, and low-wage employment Evidence from Seattle(No. w23532). National Bureau of Economic Research.
Jones, G.R., 2013.Organizational theory, design, and change. Upper Saddle River, NJ Pearson,.
Meer, J. and West, J, 2016. Effects of the minimum wage on employment dynamics.Journal of Human Resources,vol.51 no.2, pp.500-522.
Mosthaf, A, 2014. Do scarring effects of lowwage employment and nonemployment differ between levels of qualification. Scottish Journal of Political Economy, vol.61 no.2, pp.154-177.
Pettigrew, A.M, 2014.The politics of organizational decision-making. New York Routledge.
Reinartz, W., Dellaert, B., Krafft, M., Kumar, V. and Varadarajan, R., 2011. Retailing innovations in a globalizing retail market environment.Journal of Retailing,87, pp.S53-S66.
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