Task One

1a) At the time I joined school for my first class, I had great fear of the change that was taking place. Going to school for the very first time meant changing my routine and staying away from home.

1. b) At first I maintained my fear and even rebelled against the idea. I insisted on staying at home with my younger brother. However, I later accepted it after learning that school is fun.

2a) I was very excited at the prospect of having to change classes during my elementary years. This would mean attending the same class as my best friend.

1. b) The change of class brought a lot of excitement in my heart. It availed more opportunities of being with my best friend and therefore strengthening our friendship.

3) Obviously, the changes in the two situations were different. While one presented fear in me, the other excited my heart at the prospect of spending more time with my best friend.

4) Today, I am much better in terms of my approach to change. Although change still bequeaths both fear and excitement, I am more capable of handling the fear. I have learnt to prepare myself psychologically by accepting changes in my life. In addition, I have learnt how to reduce stress and anxiety in handling change.

Task Two

Question One

It is hard to pinpoint Oticon’s organizational structure as it goes beyond the conventional types. Simply put, the company’s organizational structure was achieved through an abolishment of formal organization and can be termed as disorganized. The company defines units of work through projects as opposed to other companies that base the same on departments and functions. The structure allows teams to form, disband and form again depending on the requirements of individual projects. Anyone with a compelling idea becomes a project leader and is allowed to compete with others for the available resources including the human labor. As such, it is the duty of the project leader to attract team members while the project owners provide managerial support and advice. Most of the decisions involving the different projects are made by the project leaders with most people partaking in more than one project at any given time.

Question Two

The reinvention of the company and the adoption of the new organizational structure have bequeathed immense benefits to the company. The company is able to work on approximately one hundred projects at any given time thus utilizing the human capital efficiently. The absence of permanent offices and papers means that people are always on the move thus improving their productivity. In addition, the organizational structure allows employees to learn from each other through the maximization of talking and employee involvement. Further, the set up ensures the motivation of employees as they are treated the same regardless of their professions. As such, it is hard to maintain enemy picture sin the company. The company’s overall productivity has improved as is evidenced by its ability to produce twice the volume produced by other companies.

Question Three

The implementation of this kind of structure required a change in the infrastructure to suit the varying needs. The physical space had to change through the establishment of an anti-paper anti-office structure filled with uniform mobile workstations. The desks contained in the workstations have no drawers thus limiting the retention of documents. Moreover, the company had to invest in high quality networked computers accessible to all the employees. In minimizing the volume of papers carried, the company had to invest in technological infrastructure. The second floor has been converted into a paper room where employees access incoming mail. Electronic scanners are necessary for running documents while all the remaining paperwork is shredded away. Besides investing in mobile phones, the company has equipped the conference rooms with ample computers and groupware systems for electronic brainstorming through videoconferencing.

Question Four

Lars Kolind is right in asserting that “to keep a company alive, one of the jobs of top management is to keep it disorganized”. Indeed, disorganization is has the effect of creating a very relaxed environment that is conducive for the employees. Further, it helps in the liberation of employees thus allowing for their personal and professional growth through creativity and efficiency. By disorganizing an organization, a company is sure to achieve a better cohesion among its employees through increased interactions. The creation of temporary teams to handle specific projects allows employees to learn from each other and appreciate each other’s roles. Disorganization also allows for employees to partake in different projects at the same time.

Task Three

Question One

The case of Enron and the unethical behavior of its management provide long term lessons in business ethics. The company’s failure ion 2001 signals not only one of the biggest bankruptcies but also unravels an increasingly immoral corporate America. The lessons from the collapse are a reminder of the effects of having ambitious leaders who explore their goals at the expense of the community. Ultimately, the unethical behavior coupled with the rising immorality killed not only the business but the hundreds of unsuspecting investors. A code of ethics would have guided the company into making the right decisions regarding its long term future thus avoiding unethical practices. Although the situation is unlikely to reoccur because of stringent measures, it underlies the importance of corporate code of ethics in reinforcing ethical behavior.

A corporate code of ethics is a detailed ethical benchmark for professionals within a corporate organization guiding their professional conduct. It is one of the best approaches in deterring unethical behavior as it is based on the morality and conscience of the professionals. The case of Enron underlies the importance of such a code as the unethical behavior would have been detected earlier. Although punishment is a possible deterrent, its effectiveness is limited to punishing professionals after they have committed unethical behaviors. The code of ethics acts as a foundation for workers, managers and board members to invoke whenever there are ethical issues within the organization. For instance, the code of ethics helps the management reach a compromise between the pursuit of profitability and the sustainability of the business. The code of ethics further provides principles that are important in the decisions involving the company’s long term stability over short term gains.

Question Two

One of the surest ways of preventing unethical practices within the organization is the use of a code of ethics. The code not only acts as a guideline against evil practices but also helps in the process of decision making. Unfortunately, a corporate code of ethics alone is not enough to ensure that employees behave ethically. Any corporate organization must put in place structures and elements to ensure that ethical considerations are implemented in the course of the business operation. Perhaps a more robust way of ensuring compliance to ethics is the use of regular audits. Every action must be audited on a regular basis to ensure that the responsible player acted ethically regardless of their rank or position. Corporate companies should employ the services of independent auditors to review their records on a regular basis.

There is no panacea for dispelling unethical behavior within an organization. However, a combination of actions is sure to at least dissuade employees from behaving unethically. For instance, the encouragement of internal whistle blowing is one way of preventing unethical practices from maturity. The process should however be anonymous and confidential to avoid backlash. In addition, training on ethics can also help in preventing unethical behavior within an organization. Employees are sure to abide by company regulations and code of ethics when they are trained thus maintaining the standards of the organizations. Companies can also instigate performance evaluations of ethical conduct to gauge individual employee’s compliance with set standards. Finally, organizations should put in place systems to discipline violators and make the same public. In this way, potential culprits will avoid unethical behavior for fear of punishments.

Task Four

Question One

The style of management employed within an organization is influential in the determination of workers’ involvement in a union. In a democratic management style, workers are least likely to organize a union as most of their views and needs are considered in the process of decisions making. A democratic style of management is characterized by an active participation of the employees in the process of decision making. In these organizations, the decisions reached are determined by the majority and therefore reflects the will of the employees. By integrating the views of the junior employees, a democratic style of management dissuades workers from organizing unions. The style also facilitates improved communication with feedback flowing in all direction. As thus, employees have better channels of communicating their needs and cannot therefore result to unions.

The benefit of democratic management style is that it equips all employees with skills and confidence to perform tasks. Moreover, it also helps in creating freedom at the workplace thus making it even more conducive. By providing an ambient working environment for the workers, this management style dissuades the employees’ motivation to form union organizations. Also, the articulation of issues through better communication means that issues can be resolved quickly and thus reducing the chances of revolt. Overall, companies with such a management style have an improved job satisfaction and motivation among the employees. Consequently, the main motivation in these organizations is not the salary but the fulfillment that employees get. In these cases, employees have no urge to form organized unions or join existing ones because their social needs are met. The company also benefits from improved quality of production.

Question Two

Employees are likely to join or form organized unions in companies that have an autocratic style of management. Perhaps the nature of this management style motivates employees to find comfort in such social groupings where their views are considered important. In autocratic management styles, the top management makes decisions without regarding the views of the employees. While this style is deemed important in times of crisis, it forms a motivation for the employees to join unions to fight for their needs. Normally, companies with this style of management have decisions that are reflective of the personal opinion and preference of the manager. Ultimately, the decisions reached are in conflict with the needs of the employees thus pitting the organization against its workers. Employees therefore result to join or form organized unions to fight the employers and the management.

In autocratic styles of management, employees have no channel of communicating their disapproval of decisions made in the company. Often times, strong subordinates may get irritated when their freedom is limited in terms of making decisions. As thus, these employees find more motivation to advance their causes or ideas in a different channel of unions. For instance, a request to have better working conditions may be quashed by the manager prompting the employees to use their unions to fight for the same. The requirement that orders from the management be implemented unconditionally is also disturbing and a source of dissent among the employees. The very nature of this style of management makes the managers unapproachable to the employees. Genuine causes that may have been resolved by the managers find their way into the unions where workers feel better represented.

Question Three

In the article, The Unions Are Coming, Paul Glover rightly asserts that companies get the union they deserve. Indeed, the management style employed by an organization determines its relationship with its employees and extensively their unions. Companies that treat their employees with dignity receive the same dignity from the workers’ unions. In fact, companies that are good should not be worried by the prospect of organized unions because there is little left to fight for. In this regard, companies that treat their workers with no discrimination or harassment are sure to get a union that accords it similar respect. For instance, workers would have no need to use their unions in fighting the company if it respects their views and opinions in the first place.

In contrast, companies that mistreat their workers should brace themselves for a tough talking union. Indeed, a union is shaped by the nature of the company and the style of management employed. In cases where managers use a command and control pattern, its union of workers is sure to be a difficult organization that cripples any negotiations. Unions in companies that have an authoritative toe when dealing with employees employ a similar tone when negotiating for collective bargaining agreements. Also, employees in companies that discriminate their workers based on race and sex take unions as an opportunity to vent their anger and frustrations against the management. In these unions, workers insist that their demands be met and do not toy with the idea of a compromise in negotiations.

Task Five

Question One

Starbucks is one of the leading coffee stores in the US with operations in many countries. The growing number of employees is both a sign of strength and commitment to the people that help it grow. Having grown in employee numbers, the company faced a great challenge of attracting the best employees in the market. The solution of this challenge was built around the fact that better employees would translate into better productivity in the company. Further, motivating the employees was also a big challenge as they had become cynical and demoralized. Prior to Schultz entry, the demands and needs of the employees had not been met by past managements.

Still, the company faced the challenge of rewarding store employees to ensure that the best employees wanted to work at Starbucks. The challenge of rewarding employees was arched to the need for improved performance among the workers. Indeed, the CEO believed that better treatment of employees would result in better customer treatment and thus improving the company’s totals sales. In achieving the company’s goals, the management had to find knowledgeable employees and who paid attention to detail while communicating the company’s passion for coffee. This challenge could only be attained through employees that aimed to deliver pleasing customer service.

Question Two

One of the main objectives of Schultz was to make Starbucks a great place to work. In this regard, Schultz pushed for a number of measures intended to attract and maintain quality employees. The implementation of these measures would cement the trust built between the employees and the management. Expanding the health care coverage to include part time employees was one of the proposed measures. Part timers working at least twenty hours every week would be covered in the program. Although the program was expected to reduce the company’s revenue, it would reduce the cost of hiring and training new employees as had been the norm in the company. In addition, part time employees formed two thirds of the total workforce and were therefore vital to the success of Starbucks. The healthcare program was later extended to cover all the major healthcare issues. Further, the company adopted an employee stock option plan for all the employees including part timers. The employees were entitled to stock options worth 12% of their base pay and thus elevating them to shareholders in the process. By treating employees as partners, the program would help increase the motivation of employees to work harder to the benefit of the company.

Question Three

The Starbucks Bean Stock program is a stock option for the employees where they are entitled to stock options in proportion to their base pay. In the first year of its implementation, the Stock Bean grated each employee stock options of 12% of their base pay. In the subsequent years, however, employees were granted options worth 14% of their base pay. In addition, the employees are free to cash in one-fifth of the shares grated each succeeding year thus attaining the difference between the current and the receiving year prices. The stock options program has been in operation ever since thus bequeathing employees with immense benefits in the process.

The Starbucks Bean Stock program is instrumental in sustaining employee motivation in the company. The benefit is that it transforms employees to partners of the company thus making them commit to work as if they are the owners. In fact, the overall performance among employees has increased as a result of the Bean Stock program at Starbucks. In addition, the revenue gained through the stock gives the employees as sense of social worth thus increasing their motivation. Perhaps the benefit of the stock program is evidenced through the boost in employee performance.

Question Four

The ability of the company to attract and maintain high quality employees is not only tied to its benefit programs but also its competitive pay structure. The employee turnover at Starbucks is relatively lower than in other companies of similar stature. The store employees are paid an average of between $6 and $8 per hour that is well above the minimum wage in the country. The company’s employee turnover rate ranges between 150 to 400 percent annually with the rate for baristas averaging at 65% every year. In terms of store managers, the average employee turnover is about 25% compared to about 50% for other chain retailers.

Perhaps the low employee turnover rates among Starbucks employees are attributable to the high pay scale and the profound employee benefits. In particular, the Bean Stock program as well as the comprehensive healthcare program provides a motivation for employees. As thus, the company has the ability of retaining most of its employees. The employee turnover at Starbucks is a competitive advantage against its rivals as it means that employees are more satisfied. In addition, the turnover rate also means that employees get better remuneration thus translating into higher retention rates. As thus, the employee turnover rate provides the company with a competitive edge.

 
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