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Fontana Engineering: Management & Organization Essay

3588 words - 14 pages

Fontana Engineering Plc (hereinafter referred to as 'Fontana' or 'the company') is a medium sized manufacturing firm that has entered into an employment relationship with its employees. An employment relationship is regarded as a socio-economic exchange between the employer and the employee and in contemporary society; money is the most direct and, for most people, the most significant element of the exchange. Other important factors in the relationship between employers and employee include hygiene factors (the job environment e.g. the policies and administration, the kind of supervision workers get on the job, working conditions, security, interpersonal relations etc.) which lead to job satisfaction.In this case, the company does not seem to have a vision or mission and its relationship with its employees can only be described as one that is failing to achieve any meaningful purpose. There is a serious communication gap between the management and its employees which is costing the company in terms of waste; waste of time, money, resources and capabilities. In order to understand behaviour within the organisation, it is important to assess the way the managers perceive the different groups within the organisation and how these groups perceive each other and management. Fontana appears to have adopted a unitarist perspective on employee relation. The management is the sole legitimate authority and seems to take decisions in ways that suggest that what is good for the firm is good for the employees. Whilst this may be so, there is no way of knowing as these decisions are not communicated or explained to the employees. It is expected that if the management does not involve the employees in decision making then they cannot expect them to be enthusiastic about carrying them out. They do not seem to understand what management is doing or why they are doing what they are doing.Fontana made some radical changes in order to cope with the recessions of the 1980's and 1990's. It downsized its workforce from 2,500 to 900 and redesigned jobs such that prior to the change they had a departmental manager, two assistant managers and eight foremen overseeing 400 people, but now there is no departmental manager but two supervisors to oversee the work of 150 workers with the help of charge-hands. This is a serious matter as it reflects on issues of control and accountability. It gives the impression that employees are free to do as they like; there is no hint a an organisational culture let alone the impression that the employees have set objectives and are striving to achieve both their personal and organisational goals. It is apparent that factors that motivate a workforce to perform have been overlooked in this company. Issues such as interest in the task, the need for achievement, recognition for achievement, responsibility for enlarged task and so on are not even mentioned. The effect of downsizing has not been touched. The workers have no reassurance of job...

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