Aussieco Case Study

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The Major OB related issues that should be of concern to Aussieco are issues relating to: Individual Lack of employee commitment and work quality, Lack of training, Motivation, job security, job satisfaction Management Management effectiveness, traits , Leadership style, Conflict problem, control, reward Process Human Resource Management Problems (staffing, training, motivating) Policies problems, Rules and procedures Group Group problems Structure Organisational Structural factors, Hierarchical problems, Abuse of corporate power for personal gain Context Economic, Social status, Technology Huczynski A and Buchaman D(2007) pg 11-12 Communication Communication problems Production Factors Quality problems, Customer loyalty, Status problems, Survival problems Networking Socialising/politicking These factors can be described under the following topics below:

Human resource polices: HRM procedures can be used both to develop people at work, to control their behaviour and performance” (Child J 2003) Its policies include Team work and Employment security, Careful recruitment, High pay with an incentive element, Extensive training”(Child J 2003).The HRM in Aussieco had no such policies that’s why problems existed. Hierarchy is another issue to be considered which has been greatly criticized (Child J 2003). Hierarchical nature of companies has facilitated the problem of the abuse of corporate power for personal gains (Child J 2003) pg 4. Evidence of this is seen in the CEO’s action.in Aussieco. For an organisation with 600 employees, “there should be two layers above non managerial employee”. (Child J 2003) page 68.Aussieco needs delayering. Work Place problems like in Aussieco occurs when the are unfavourably situations that surround the workplace. Workers of Aussieco come to work generally feeling frustrated as the conditions that surround their arrival, work and departure are not conducive. Group problems, senior management have their own dinning room and sales staff. These are people who should mix up with the other employees. Problems occur when it is difficult for other members of the organisation to be a part of the group like in Aussieco . Leadership: Traits approach: Certain traits are needed in an individual to emerge as a leader (Bozionelos N 2008) seen in the Big five traits “Emotional stability, Openness, Agreeableness, Conscientiousness, Extraversion” (McCrae and Costa 1987) To become a leader you need to be high on conscientiousness, openness, extraversion and low on agreeableness. (Timothy Judge and his associates 2002). To be an effective leader, a person should be high on extraversion, openness but low on conscientiousness (Judge, Bono, Ilies and Gerhardt, 2002). Situational approach In judging leadership it may vital to look at the favourableness of the situation to the leader (The Fielders contingency model 1964 and 1967).

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