Professional Documents
Culture Documents
Management Report
Executive Summary
The car dealership organization Ratchetts Ltd. has been analyzed
in this report. The organization is facing issues with customer
service, administration of employees and future finance. From
the analysis it has been identified that Ratchetts Ltd. are working
in groups and not in teams. It has been identified that there is a
lack of communication between employees, the sales people lack
adequate training, there is little organizational identity or
leadership from the manager and we also believe that there is a
little job satisfaction due to intense competition; an effect of the
commission system of payment. Ultimate recommendations are
to train employees, employ new leadership strategies, deploy
strict guidelines on sales strategy, provide job enrichment and
help Ratchetts adopt cross-functional team strategy. Ultimately it
seems to be a human resource issue which can be fixed given
adequate time.
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Contents
Introduction...………………………………….…………..………………………...4
Departments at Ratchetts...………………………………….…………..…….5
MNC’s recommendations………………………………..………………………10
Action Plan…………………………………………………..………………………12
Reference List……………….………………………………..………………………14
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Introduction
In all three areas mentioned above, examples will be drawn from the
organization and analyzed on the basis of organizational behavior
theories
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Departments at Ratchetts
It has been asked to justify whether the workers at Ratchetts are in groups or teams.
By monitoring, a particular dialogue was identified at the workplace- a new car salesman
says “I try to ‘move the metal’ so that I get my commission and keep Lifestyle happy and
now they’re saying that I’m too pushy – in this job you have to be, otherwise somebody
else gets the deal.” This indicates that there is a prevalent tense atmosphere and if the new
car salesman is not pushy then the used-car salesman acquires the deal instead of him. The
pressures of commission payment seem evident here as well as competition. Still, there
must be a reason as to why he is said to be pushy.
The departments at Ratchetts are in groups because it can be seen that the workers
disagree over each other’s tasks, there is constant tense atmosphere between workers
which produces a hostile environment; demonstrating the early stage of group formation
known as “Storming” (Tuckman, B.W. and Jensen, M.A.C., 1977).
To demonstrate tension as part of storming; another used car salesman says “We do the
best we can and Service lets us down each time”- shows there is lack of trust and
interdependence. Here it is being argued with the service department that the sales man is
just thinking about his individual groups’ benefit and not about Ratchetts as a whole.
Another salesman argues ‘She was my customer, I talked to her first but Debbie signed her
up on my day off - I deserve a percentage’, interpersonal hostility is revealed here.
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Some attributes have been found at Ratchetts that provide a team working
atmosphere.
The car sales manager reports directly to Alan Ratchett and indirectly to his Lifestyle
regional manager. The car sales manager, the team leader, reports to his regional
manager. The car sales manager is the team leader in this case, and the whole team is
made of departments of skilled people required to complete tasks. These departments
operate together to obtain rewards given by the company.
Another point that shows that these formal groups of people consist of teams is that
“each dealership will be given their results in a monthly league table for the whole
region.” Lifestyle has tried to make the two teams work together for the greater benefit
of the company even though there is little follow up evidence of follow up team work.
The speed and efficiency of work also seem to be low which is indicative of early stages
of teamwork (Katzenbach, J.R. and Santamaria, J.A., 1999).
In conclusion, because there is little evidence of teamwork and much more group work
at Racthetts, we will instate them as being groups and not teams. If the groups were at
a “performing” stage then we could call them teams but we believe that their
“storming” characteristics instate them as groups.
Still, it can be evaluated that our monitoring attempts may not give us the whole
picture. Using a group stages report may not be the best analytical model because
some people in the organization that have not been monitored may be “performing”
and working together cooperatively. The model tells us what the majority of workers
are doing; disregarding the minority team workers. It does not consider the role that
individuals undertake at Ratchetts. Furthermore, it has been arrived at the decision
that they are in a storming phase purely by subjective analysis. It will also be difficult to
create a timed action plan because it is difficult to know exactly how much time it will
take Ratchetts employees to transit from one development stage to another.
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Issues and Problems at Ratchetts
It has been asked to identify and investigate issues and problems at Ratchetts.
The first issue that affects Ratchets Ltd is its affiliation with Lifestyle. Using Hertzberg’s Two
Factor theory; basic hygiene needs need to be provided by Ratchetts; additionally
motivator factor for incentives and thus motivation must also be provided which;
enhancing job satisfaction. A car dealer has to be selected for dealership rights, which
means that “rigorous vetting procedures” of registration guidelines defined by lifestyle;
have to be met. Once they are affiliated with Lifestyle, benefits are entitled and rewards
are given which gives the dealership; incentive to perform. If the employees at Ratchetts
do not achieve specific targets; they will lose out on benefits as well as £30,000 at end of
the year.
Stacy Adams (1963, 1965) argued that we are motivated to act in situations which we
perceive to be inequitable or unfair, practical examples occur when salesmen have “behind
the scenes arguments” regarding to who the commission should go to, comments such as
“‘she was my customer, I talked to her first but Debbie singed her up on my day off – I
deserve a percentage” relate to this. The sales person has perceived inequity and attempts
to resolve it. Perceived equity seems to lead to greater job satisfaction and organizational
commitment (Sweeney et al., 1990), however inequity is perceived more commonly at
Ratchetts due to similar dialogue elsewhere, therefore, we will instate that issues at
Ratchetts include low job satisfaction and poor organizational commitment.
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Another issue is how the after sales department works. If car dealership technicians are
paid for the number of jobs they do, each job is based on a set amount on the books, so
technicians’ work time precede the set deadlines; having more time to complete another
job.
This is more rewarding for the technician but it leads the service department to experience
high levels of repeat repairs which are unwanted expenses as technicians disregard the
quality of their repair due to conflict of interest. This is a cause of poor customer service
and hence, low future sales due to damaged company image. According to Tolman’s
(1930) expectancy model, employees are expecting to receive rewards after putting effort
in their jobs, but in this sense their efforts are contributing to the negative image of the
company due to unsatisfied customers bringing back their vehicles to be repaired.
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There seems to be a lacking of the sales people to understand the thoughts and
feelings of customers and to manage their relationship with the customer accordingly
(based on Buchanan, Huczynski, 2010) in other words, they lack social intelligence.
“Customers considered that salesmen were too ‘pushy’ and they felt that they were
abandoned once the deal had been done with them”. This is a representation of a lack
of social intelligence; indicating that the sales people have had limited training and
little experience in their field (based on Buchanan, Huczynski, 2010). Customers do not
appreciate such poor sales techniques and therefore complain to Ratchetts; placing its
reputation at stake. Additionally, the sales people could be coding their messages
incorrectly due to external pressures such as the commission system of payment.
Negative feedback is sent by the customer not because of their perceptual filters or
decoding capabilities but because of the sales person’s “pushy” technique of coding
their messages. Lack of training is a problem here.
Mind Tools.com
Still, it would be unwise to say that it is the lone fault of the sales people. Customers
can be difficult to sell to and they may decode the sales people’s messages incorrectly.
Therefore, examining this from a communication process model may not be useful and
there could be other problems affecting face to face communications; between
salesperson and customer.
The Two Factor Theory has limitations when analyzing Ratchetts. The theory tends to
disregard the emotional complexity of workers. Some workers at Ratchetts may simply
not want to perform. Hackman and Oldham (1976) note that the theory does not allow
for individual differences, such as a particular personality traits, which would affect
individuals' unique responses to motivating or hygiene factors. The salespeople may
think that the commission they obtain is simply not comparable to the level of effort
they have to place to make a sale, hence, their pushy, take it or leave it attitude. On
the other hand they may be putting in effort but this does not necessarily mean that
they are being effective. Victor Vroom’s Expectancy Theory poses similar limitations as
identified above; it shows outcomes based solely on expectancy, disregards individual
needs while trying to produce rewards. The effectiveness of the theory seems
questionable; it may not apply to every salesperson or worker at Ratchetts because
they have different motivating needs. Nevertheless, these theories have helped
identify issues and we can proceed to rectify management based on this; at least for
the short term.
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Our Recommendation
Ultimately, it has been asked that recommendations be provided that will aid Ratchetts.
The contingency theory of leadership states that leaders must adjust their style in a
manner consistent with aspects of the context. Managers should have developed
transformational leadership abilities as soon as problems started elevating at Ratchetts in
order to stay consistent with Ratchett organization’s context. Using the Tannenbaum-
Schmidt (1958) continuum of leadership of behavior model, a change in leadership style
must be enforced; particularly on Alan Ratchett.
Using the SITUATIONAL LEADERSHIP® model (Hersey, Blanchard, 1988), since Alan is
currently in a delegating phase (S4), he needs to move into the other participating, selling
and telling phases. This means he needs to develop a closer relationship with his workers,
keeping regular casual checks of how things are going with his subordinates, asking them
about the problems they are facing and understand their emotions to the problems. This
will build relationship. He then needs to provide his expertise in the task, giving them ideas
on how to perform their work; explaining his decisions and provides opportunity for
clarification. Finally to ensure that the right decision is implemented (S2), he needs to
delegate and provide specific decisions so that his workers are aware of exactly what they
are supposed to be doing (S3). A typical example would be Alan Ratchett understanding
why his customers think salesmen are pushy through a meeting with his salespeople,
understand the sales peoples’ views and feelings toward this matter, then cooperatively
create solutions such as behavior modification techniques, enforce these decisions onto
the sales people and regularly check whether they are implementing these and how they
are implementing these.
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He should make a note to explain his sales people the benefit of good customer service
e.g. (“We will not get any sales if we turn our customers off simply because they are
intimidated, it’s up to you so help them in their purchase, by understanding their needs
and diplomatically pushing a sale. Do we want poor sales? No, we want lots of sales from
happy customers because that’s how you guys get bonuses”). Sales people are centric here
because they are the “profit generators”.
Stewart Associates
Job Enrichment (Herzberg 1966, 1968) is a technique for broadening the experience of
work to enhance employee need satisfaction and to improve motivation and performance.
There needs to be a challenging atmosphere to enhance job satisfaction. Vertical loading
factors need to be used to achieve job enrichment (Buchanan, Huczynski 2010).
Additionally using the Goal Setting Theory (Locke 1968) will create challenging goals lead
to higher levels of performance, ultimately helping Ratchetts improve its financial and
organizational situation. Such methods may seem like broad change but given time to
adapt, workers will perform well.
Tutor2U
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Furthermore, in order to encourage team working, workers should get a chance to
experience other worker’s roles; as part of vertical loading. They should attend programs;
shadowing other employees, and thus will understand how the entire organization works
and implications of poor performance in other departments of the organization. Aims
should also be set to reduce Taylorism and employ quality maintenance procedures.
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Priorities (from the start of next month):
Implications:
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References
1. Tuckman, B.W. and Jensen, M.A.C. (1977) ‘Stages of small group development revisited’,
Group and Organizational Studies
2. Katzenbach, J.R. and Santamaria, J.A., (1999) ‘Firing up the front line’, Harvard
Business Review
3. Adams, J.S. (1963) ‘Inequity in social exchange’, in L. Berkowitz (ed.), Advances in
Experimental Social Psychology. New York: Academic Press
4. The Banyan Group (n.d.) “The Tuckman Model of Team Development”. Available at
http://banyan-online.com/19.html (Accessed: November 15 th 2010)
5. Value Based Management (2010) “Motivation Factors, Hygiene Factors: Two Factor Theory
and KITA”. Available at
http://www.valuebasedmanagement.net/methods_herzberg_two_factor_theory.html
(Accessed: November 10th 2010)
6. Hrzone (n.d.) “If I make the effort do I meet my goals?”. Available at
http://www.hrzone.co.uk/blogs/brendanwalsh/360-degree-appraisal-and-performance-
reviews/if-i-make-effort-do-i-meet-my-goals (Accessed: November 10th 2010)
7. Mind Tools Ltd (2010) “Why you need to get your message across”. Available at
http://www.mindtools.com/CommSkll/CommunicationIntro.htm (Accessed: November 12th
2010)
8. Buchanan, D and Huczynski , A (2010) Paul Hersey and Ken Blanchard , (7th ed.) UK: Pearson
Education Ltd.
9. Stewart Asoociates (n.d.) “The continuum of Leadership Behaviour”. Available at
http://www.stewart-associates.co.uk/leadership-models.aspx (Accessed: November 16th
2010)
10. Hackman J. R., & Oldham, G. R., 1976, "Motivation through design of work", Organizational
behaviour and human performance, vol. 16, pp. 250–79
11. Hersey, P. and Blanchard, K. H. (1977). Management of Organizational Behavior: Utilizing
Human Resources (3rd ed.) New Jersey/Prentice Hall
Words: 2474, does not include contents page or references and in text reference
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because we believe in the difference
Meeting Log MNC
Meeting Subject: MYO ASSIGNMENT Date of Meeting: November 4th 2010
Attendees:
Abdullahi Guled, Delman Babaker, John Rochwani, Nikolaos Gratsos, Saptarshi Masid
Agenda:
Planning:
Meeting Log:
Upcoming Meetings:
November 5th 2010
Attendees:
Abdullahi Guled, Delman Babaker, John Rochwani, Nikolaos Gratsos, Saptarshi Masid
Agenda:
Planning:
Meeting Log:
Upcoming Meetings:
November 15th 2010
Attendees:
Abdullahi Guled, Delman Babaker, John Rochwani, Saptarshi Masid
Agenda:
Planning:
Meeting Log:
Upcoming Meetings:
November 22th 2010
Attendees:
Abdullahi Guled, Delman Babaker, John Rochwani, Saptarshi Masid
Agenda:
Planning:
Meeting Log:
Upcoming Meetings:
November 22th 2010
Attendees:
Abdullahi Guled, Delman Babaker, John Rochwani, Nikolaos Gratsos, Saptarshi Masid
Agenda:
Planning:
Meeting Log:
Upcoming Meetings:
Project report to be handed in on the 29th, no upcoming (formal) meetings
Strengths Weaknesses
All were eager to complete the task Poor communication with a group member
All provided feedback on progress Different perceptions
One group member had previous experience Different message decoding abilities
of this assignment
Worked collaboratively as a team Social Loafing
Good group cohesion Time management
Comfortable with other members, well Conflict in shared frames of references of
acquainted individual members
Task allocation:
ASSIGNMENT
JUSTIFY IN GROUPS: JOHN,
JUSTIFY IN TEAMS: NICK
Patience in coming up with ideas- group members were at times facing difficulty with developing
ways to apply course theory into case study. It had been realized that being patient; carefully
conducting research and application helped solve this.
We learned new things about each other’s mode of work- all the group members preferred different
modes of work, Nikolaos tended to be too descriptive about the case study while Abdullahi tended
to utilize too much application. By analyzing such situations, we learned how to obtain a balance
between both methods of work.
We learned the importance of setting and achieving smaller goals- we reviewed our progress every
day, stating how much time we have left till deadline. This showed that we were all feeling the
pressures of the goal. Therefore, to relieve pressures, we set smaller goals which were easier to
achieve, lifting the burden of the entire assignment. Thus, we learned the importance of setting
tactical goals as it greatly helps making the ultimate goal easier to achieve. This was done by
attaching smaller tasks and work such as splitting questions and setting shorter deadlines.
We learned that we can put effort into effective research to achieve our goals- we learned that it is
very difficult to apply theory to the case study from mere intellect and saw that conducting effective
research opened new perspectives of analyses and aided us in achieving our goals. We used a variety
of sources- books, the internet and journals.
Communication styles were big factors in our group work. Abdullahi being an INTJ tended to
reserve his views and ideas, conveying them far less than others but provided powerful judgments to
other’s views, helping them perform good evaluation of their work. Nikolaos being extrovert,
communicated a lot of thoughts and ideas, even though he didn’t judge his ideas of think about
them, he provided more descriptive work showing his (SF) feeling characteristics, while AbdullahiV
provided more analytical work. Nikolaos generated a lot of ideas from his sensation-feeling
personality even though he tended to be aggressive in his communication to convey his ideas. John
was more reserved in his communications, tending to communicate less creatively but strongly
convey fundamental flaws of other’s work, demonstrating his objective and straight to the point
communication style originating from an INTP personality. Delman was quite the opposite; he
tended to communicate creative ideal well but lacked persuasive power in conveying his ideas.
Never the less, he used his feeling personality to develop new ideas and write them down to be used
in the final report, even though he didn’t persuade other group members well.
On the basis of Belbin’s team roles, we identified our group member’s as the following: Abdullahi -
Monitor-Evaluator/ Specialist because he judges a lot, sees options and is strategic, Delman-
Teamworker because he is diplomatic and very cooperative, Nikolaos- Resource Investigator/ Shaper
because he is very extrovert, is dynamic and motivates others to overcome obstacles, John-
Implementer/ Completer because he gets things done and the group can depend on him, Saptarshi-
Coordinator/Plant because he clarifies goals, delegates and does creative work.
What has worked best for the group?
The fact that group work employs collaborative thinking and bouncing of ideas helped and the entire
assignment administrated by one leader worked very well. Therefore, despite the negatives of
assigning a leader, the leader’s direction helped us get the tasks done.