Instructions:
Your group is from a well-regarded consultancy firm and has been engaged by your client, ComSyst Technologies (CST) to provide advice on addressing a variety of challenges.
CST is a multi-national communications software and systems developer serving the defence and emergency services industries. CST has offices in Australia, New Zealand, the United States, Philippines, India and South Korea.
CST has recently lost three major tenders to competitors and their market share has declined substantially in the last two years. This has been attributed to some significant people-related issues including poor employee performance, low employee engagement, a decline in staff retention and resignations of some key specialists. Technological advancements elsewhere have highlighted a gap in CST’s technical skills and capabilities.
Your brief from the client is to prepare a report with recommendations to achieve the following objectives over the next two years:
- Ensure CST is well positioned for the future by attracting and retaining the best talent possible
- Create a team based high performance culture
- Build employee capability and performance
To address these objectives your consulting team will need to draw on content from modules two, three and four. Some consideration may need to be given to other module content if deemed relevant. It is also expected that groups conduct research beyond the resources provided on the subject site
For each of the objectives mentioned above, you must include at least one real world example / case study from the literature of how other organisations have successfully achieved the same or similar.
Executive Summary
ComSyst Technologies (CST) faced several employees and work culture issues such as poor employee performance, engagement, and retention. After embellishing the background of the case study, multiple assumptions in the discussion section have been made. Identifying fundamental causes or reasons for these issues and presenting possible solutions made the discussion section appealing and fruitful. Eventually, depending on the company’s present objectives, three separate recommendations, along with real-time examples, are drawn. These are strategic considerations for the company, which can be executed to improve organizational and individual performance in different organizational contexts.
Introduction
Every organization must aim to improve its internal culture to increase employee performance and overall business outcomes. The management’s responsibility is in the spotlight, as it has to manage people to spur the ability to work in the best interest of the organization. In this extensive study, the weight is on several organizational cultures and employee performance issues in ComSyst Technologies (CST). Being a strategic consultant of the company, it looks compelling to guide the company through elaborating on some strategic considerations in the internal business environment. The whole study, including background, discussion, and recommendation, is based on several objectives, which are to be shaped after assessing issues and challenges.
Background
ComSyst Technologies (CST) is a software and system developer currently operating in different countries, such as Australia, New Zealand, the United States, Philippines, India, and South Korea. The case has revealed that the company lost several important tenders to competitors. The organization’s analysis exposes that the management lost these tenders due to poor internal culture in terms of people’s management and performance. Noticeable issues that justified the company’s poor culture or performance are poor employee performance, low employee engagement, the decline in staff retention, and resignations of some critical specialists. Apart from it, according to revelations, there was a considerable gap regarding CST’s technical skills and capabilities. Due to these growing issues in the internal business setting, growth and expansion opportunities are diminished. The firm failed to maintain trust and ensure quality outcomes for its clients. The switching cost for the client’s customers has been reduced, and the company is draining money with the passage of time.
Due to this unfavorable situation, there is a need to make some significant shifts in the internal culture. Employee performance, retention, and engagement are to be improved to intensify the perceptibility of business outcomes. It seems a big challenge, but some strategic considerations may work for the company, as far as the impact on employees and business outcomes is concerned.
Main Discussion
The company has shaped vital objectives for the next two years. The objective is to reposition for the future by attracting and retaining the best talent. Apart from it, developing a team-based high-performance culture and building employee capability and performance are two crucial objectives. Consequently, by keeping these objectives in mind, discussion or analysis can be initiated.
· People’s Management Principle and Theories
One of the most apparent reasons for the company’s poor performance is the lack of capable people management. It has been revealed that the administration failed to assess different employees or cultural issues. For instance, in people’s management, one of the best approaches for company management is to contain the democratic approach. In the modern business world, the management usually considers reviews, ideas, reservations, opinions, and thoughts of employees working at the company’s bottom line. Involving employees in the decision-making process and delegating the work are vital traits to retain the best talent and motivate them in the long run. Lamentably, employees’ poor performance was observed because there was a gap between management and employees in terms of communication and engagement. Specialists in the company were leaving because they were not respected and provided adequate returns. It can be affirmed that the management’s democratic style was invisible, which restrained employees from offering their best. Instead of focusing on people and performance, the intention of the corporation was on profitability. One of the fundamental principles of people’s management is effective listening and empathy. In the workplace, employees always have issues and reservations regarding work tasks, relationships, and work settings. CST did not implement this principle, as it only integrates with the perspective of the business. Hence, people or employees’ response was diminished due to the absence of this particular principle. Active listening and empathy are crucial principles that can be implemented when adopting a democratic management approach. CST was never near to it, and it led to different problems. The company failed to attract and retain the best talent because the management integrated with theory X. For instance, the CST management believed that employees did not like their work, and an autocratic approach was needed to get things in the favor. They failed to attract and retain the best talent because they did not trust their employees. On the other hand, competitors who won the tenders depicted theory Y implementation. For instance, the management of these companies involved employees in the decision-making process in augmenting the visibility of attraction, motivation, and high performance (Senarathne, 2020). Employee attraction and retention cannot be attained because without managing or maintaining good relationships with employees. After the company’s analysis, it has been observed that the company contained a poor work setting, which led to dissatisfaction and a lack of motivation. Nevertheless, critically, these factors are not enough. For instance, employees can be satisfied or motivated through social factors. These social factors are engagement or being part of the groups. Therefore, these considerations were not streamlined by the CST Company, which led to poor performance (Bergstedt, 2010).
· Effectiveness of Approaches and Organizational Performance
Usually, the company in the contemporary era has to integrate several approaches to build a better relationship with employees. One of the most pre-eminent criteria for the company is the sociological approach. It is a fact that people or employees in organizations come up with different backgrounds, such as cultures, regions, races, and education levels. The organization cannot build a productive relationship if there is turmoil in the workplace. The big reason for the poor performance and employee turnover was the turmoil in the workplace. The integration of the different cultures, norms, and values of employees is always imperative when it comes to harmony. The turmoil in the internal culture created a negative impact on employee performance and retention. The relationship between productive people management and employee performance is quite visible in this modern era. For instance, productive people management may lead to early identification of people or employee issues. Supporting and encouraging employees to streamline issues and coming up with new ideas can be the right approach to making the difference. With the employees’ perspective, the support from the top management will heighten the motivation, and sequentially, the impact on the business outcomes and organizational performance will be positive. The most important thing for the company’s management is to reinforce the people management practice or approach to sustain better individual performance. It is all about aligning with positive reinforcement in the people management process. The poor performance, low employee performance, and employee retention were apparent in CSR because the company management did not identify the need for the human relations approach. The human relation approach, which is another dimension of the people management, can force organizations to support or encourage the freedom of expression and thoughts. The needs, attitudes, and aspirations of workers in the internal business setting are imperative to integrate to justify employee retention and engagement. If there is people’s culture in CST, the switching cost for specialists can be high, which may lead to retention. These are two essential people’s management approaches, which can derive incredible individual performance. Making the workplace or culture appealing by aligning with these approaches can enhance employees’ motivation and assertiveness. But it does not mean that a company cannot manage and control employees. Controlling and managing employees through an appropriate appraisal system and counseling is necessary to positively impact individual and organizational performance (Scrima, Rioux, & Di Stefano, 2017).
· Communication and Problem Solving
Poor employee performance, lack of retention, invisible engagement, and growing turnover were due to ineffective communication and problem-solving skills. Effective communication and problem-solving techniques or skills are compulsory when it comes to people’s management. For instance, CST failed to adopt a proper problem-solving method concerning multiple employee conflicts or disputes in the workplace. The best way to solve problems in the workplace is to understand issues or challenges, brainstorm, strategize, work on alternatives, and present solutions (Hicks, 2019). If an employee complains about any issue or conflict, there should be a quick response by the management to get things settled effectively. CST is used to solve problems even without enlisting possible barriers or resistances. Solving the problem only from the perspective of the business or organization can be a blunder, which can contribute to poor performance and turnover. Finding excellent opportunities, staying open-minded, and becoming an uninterested observer are the best skills to solve problems without even dismantling employees’ ability to work in different teams. Clarity, confidence, friendliness, and empathy are necessary communication skills for human resources or people’s management. But, to manage a diverse workforce in the workplace, emotional intelligence is needed. CST used adopted and sustained conventional ways of communicating with employees, which kept a lack of employee engagement, and retention in the loop. Emotional intelligence in communication can help contain emotional and sentimental attachments, and it is the best way to manage employees in a range of organizational contexts (McKay, Davis, & Fanning, 2009).
· Manager’s Role in Change Management Related to Challenges and Risk
The role of the manager in the changing environment is critical. For instance, one of the prominent roles of the manager is creating urgency. The manager is one of the few people or stakeholders of the company who can identify the need for changes. In CST, the manager’s role was not defined in terms of the change, and consequently, they face resistance and growth. Identifying change and creating urgency in the workplace can always change the behavior and mindset of people or employees. The manager in the changing environment can be in the best position to conduct a gap analysis. He can compare the current performance of employees and business outcomes with the expected change. The big challenge for the manager in CST can be employee resistance due to fear of the unknown, lack of job security, and shifts in job routines. This is a fact that employee resistance and lack of financial resources are two striking risks that can put the whole change process in jeopardy. If CST intends to make some changes in the business environment or work culture, it has to address these risks or challenges. Thus, it can be said that CST did not identify the need for a change in the internal business environment, as it aimed to sustain the unconventional process to get business benefits. Now, to tackle people’s management or employee issues, the manager’s role can be redefined (Goksoy, 2015).
Recommendations
CST has come up with some objectives to improve the workplace culture and intensify organizational performance. One of CST’s leading goals is to be well-positioned for the future by attracting and retaining the best talent possible. Being a strategic consultant of the company, it looks crucial to recommend or suggest some practical ways to attract and retain talent.
· Culture of Work Recognition
The best way for the company to retain specialists and enhance employee engagement is employee recognition. The CST Company must establish a culture of recognition, as good work is also to be appreciated with some dedicated returns for employees. The focus should not only be on the individual employees and working with employees to improve the work and inspire learning is also a key trait to make the difference. Two-factor theories, which consist of hygiene and motivation factors, can be applied in this people management approach. For instance, acknowledging work and recognizing what an employee has done for the company can boost motivation (Sanjeev & Surya, 2016). Of course, delightful employees will show their assertiveness to stay in the organization in the long run. People or employees who want to work on ideas and beliefs can be defined as talent. Therefore, recognition is highly recommended to keep them in a loop. Even employees who intend to contribute and fail can be encouraged, as work recognition is also critical. Apart from work recognition, making a necessary cultural shift can also contribute to organizational and individual performance. CST Company should evade unnecessary stress and bring the attitude of acceptance, as it can help employees to work in the best interest of the company. CST can reinforce this strategic recommendation through its manager and supervisor, as it can also be related to the manager’s role in the changing environment discussed above. An inclusive and strength-based approach is also in the limelight when it comes to retention and talent management. According to this approach or theory, an organization must manage all employees’ talent, as all employees ultimately have the potential to depict talent. This theory also justifies the work recognition approach, as facilitating and encouraging all employees in different organizational contexts, is the right approach. Promptly, admittedly, CST has to see a large picture to turn things in favor and get outcomes according to expectations. If organizational outcomes or performance, backed by retention of talent, is visible, the company can win the tender in the presence of many other competitors (Buttiens & Hondeghem, 2015).
For example, Google has created a culture of work recognition, as making staff fail several times is encouraged. Google management sees a larger picture, as work recognition for success and failure can result in significant opportunities and outcomes in the long run. CST has to reward both successful and below-average employees to set the foundation for attractiveness and retention of the talent (Grossman, 2014).
· Sense of Autonomy and Fostering Openness & Transparent
The second objective of the company is to build a team-based high-performance culture. As explained in the above literature, employees can be motivated to work in different teams without containing differences. The best recommendation for CST Company is to create a sense of autonomy. The leadership team of people management in CST gas to play its role in this regard. People management has to take proactive steps to make employees feel well connected to teams or groups (Hess, 2018). To build a high-performance team culture in the internal business environment, there is a need to cultivate a strong relationship among team members. Employees working in different teams of groups must have to portray a strong bonding, and it can bring a sense of autonomy. Setting employees up with various opportunities to develop and grow in particular projects, such as new software or system development, is also the right approach. It is all about improving or increasing the individual’s commitment to team or group effort, which can drive high performance. Another consideration to build a high-performance team culture is to foster transparency, team identity, and openness. Every employee in a team or group should be streamlined, and it may make the teamwork to achieve performance outcomes. To shape a high-performance team culture, company management has to take some risks. These risks are to be taken without evading the employee’s ability to work in teams (Octanner.com, 2019).
The related example of autonomy in teams is Patagonia. It is a prominent clothing company based in the United States of America. The Company has justified the sense of autonomy in teams through flextime. Allowing employees to surf in different firms brings more value at work. The management of the company believes that less control over employees can lead to more value, helping to gain and sustain the competitive advantage (Phelps, 2019).
· Setting Expectations and Performance Appraisal
The third objective of the company is to build employee capability and performance. It is a challenging objective, as improving employee performance can be tough due to possible barriers or resistances. The best way to enhance employee capability and performance is to set clear expectations. CST Company has to demonstrate its expectations from recruitment and selection to job training. Aligning this recommendation will help to hire an adequate number of people in the future. When setting clear expectations for employees, a well-defined road map can be fixed, and it also sets the ground to meet both individual and organizational outcomes. So far, CST Company has not standardized the appraisal system to identify weaknesses or loopholes in terms of employee performance and capabilities. Thus, the best recommendation to keep the ability and performance in the loop is to adopt 360 feedback systems. Key stakeholders, including employees and customers, will be participating in this process. The critical incident method can also be used, especially when preparing employees for a mega software and system development project. Accordingly, on-job training and relevant mentoring techniques can be used to improve performance (Urbancová, Stachová, & Stacho, 2017).
For example, Tesco, a well-known Retail Company, based on the United Kingdom, uses 360-degree feedback to improve employee performance. It is a quick and cheaper way to identify employee’s performance issues and shape effective training strategies (Carranza, 2016).
Conclusion
In the end, it is to presume that CST Company has the potential to eradicate issues such as reduced employee performance, turnover, and lack of employee engagement. In this contentious landscape, a company like CST must be prepared for these changes to be relevant and lucrative. The study stressed discussion and three recommendations for CST Company. These recommendations are supported by some real examples, which justify the effectiveness.
References
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Buttiens, D., & Hondeghem, A. (2015). Strategic choices regarding talent management in the Flemish public sector. Society and Economy, 37 (1), 49-72.
Carranza, A. (2016, March 28). How The Rapidly Changing Business Ecosystem is The Harnessing 360-Degree Feedback System. Retrieved from https://www.business.com/articles/how-the-rapidly-changing-business-ecosystem-is-harnessing-360-degree-feedback-system/
Goksoy. (2015). Organizational Change Management Strategies in Modern Business. IGI Global.
Grossman, D. (2014, January 24). Secret Google lab ‘rewards staff for failure’. Retrieved from https://www.bbc.com/news/technology-25880738
Hess, J. P. (2018). Autonomous team members’ expectations for top-leader involvement. Team Performance Management, 24 (5/6), 283-297.
Hicks, T. (2019, March 1). Seven Steps for Effective Problem Solving in the Workplace. Retrieved from https://www.mediate.com/articles/thicks.cfm
McKay, M., Davis, M., & Fanning, P. (2009). Messages: The Communication Skills Book. New Harbinger Publications.
Octanner.com. (2019, November 4). 4 Ways to Build a Thriving Team Culture. Retrieved from https://www.octanner.com/au/insights/articles/2019/11/4/_4_ways_to_build_a_t.html
Phelps, S. (2019, september 24). If You Love Your Employees, Set Them Free: Autonomy Is Key To Employee Engagement. Retrieved from https://www.forbes.com/sites/stanphelps/2019/09/24/if-you-love-your-employees-set-them-free-autonomy-is-key-to-employee-engagement/#4955bcab68e6
Sanjeev, & Surya, A. V. (2016). Two Factor Theory of Motivation and Satisfaction: An Empirical Verification. Annals of Data Science, 3 (2), 155-173.
Scrima, F., Rioux, L., & Di Stefano, G. (2017). I hate my workplace, but I am very attached to it: workplace attachment style: An exploratory approach. Personnel Review, 46 (5), 936-949.
Senarathne, C. W. (2020). The Optimal Capital Structure under the Conditions of Employment: An Application of Theory X and Theory Y. Zagreb International Review of Economics & Business, 23 (1), 51-69.
Urbancová, H., Stachová, K., & Stacho, Z. (2017). Using of Performance Appraisal Methods in Czech and Slovak Organisations. Quality Innovation Prosperity, 21 (3), 62 – 77.
