PEOPLE MANAGEMENT

Managing People in Organisations

Managing People in Organisations

Introduction

In this research, we try to focus on the issues faced by Orton Plc during their business take over and the possible solutions that the management can take to overcome those issues. The research discusses the trend in the business industry and how it impacts Orton Plc's strategy. It further highlights the organizational structure and management philosophy at Orton Plc. The study is based on the situation and finally recommends what sort of diversification should be used by the company. From the recommendations, the paper identifies the organizational structure that the company would need to address to implement that diversification during the take over. Moreover , the paper will answer the following six questions such as :

The employee related issues prior to the takeover and what could be done to overcome those problems

The impact the takeover has had on the organisation and what Orton's management team could do to address the problems

The role of management during and since the takeover

Overall analysis of the situation

Solutions as to how to overcome the problems encountered

Reflective account of the researcher's learning from the report

A) THE EMPLOYEE RELATED ISSUES

Three Business Take Over Issues Related and Recommended Actions to Address These Issues

The first issue related to the strategy implementation at Orton Plc is the fact that employees are not furloughed during the leans season or when the demand is down. The direct effect of this action is that the cost of labour goes up. The second issue is that bonus is linked to work groups and if a group performs well, the entire group gets the bonus. The issue related to strategy implementation is that paying a bonus on a group basis increases the cost of paying bonus. The third HRM issue related to strategy of Orton Plc is that all departmental managers are paid on the basis of return on assets. Since employees are not furloughed as is customary in the industry, there must be alternative manufacturing facilities where they can produce goods which are profitable (Mustafa, 2005, pp 39).

The suggestion for bonus linked to work group is that there should be a mix of individual, and group bonus. The purpose of individual bonus is to ensure that only those workers that have put in adequate work are rewarded. It is suggested that there should be a restructuring of Orton Plc and managers should be paid on the basis of returns of the unit she manages. The compensation system of any organization is based on two components; monetary and non monetary. Porter (2008) says monetary component consists of basic salary and complete package in tangible terms.

On the other hand, the non monetary component comprises of reward and recognition, training and development opportunities and support from the reporting authorities. Same is the case of Orton Plc. A significant part of employee's package is based on their performance and profitability of the company. However, there exists room for improvement. This system could be more effective if linked ...