ANTO COMETA
The rewards and costs of achieving and sustaining competitiveness in the global era are fundamental in the placement of interests both of the business and the workers. Advancements in technology alongside with the competitive nature of the market has led most if not all organizations to look for viable ways of augmenting its ability to perform in order to avoid extinction. Increasing the efficiency and productivity of the business which is generally reflected in the company’s capability to maintain its profitability and still sustain the needs of the business as well as its workers are the perceived elements for its survival. Altering the processes and structure of the organization are largely the utilized ways in response to the dilemma or challenges imposed by the situation. However, modifications in the existing structure and processes of the organization in order to adapt to the changing requirements of the competitive market have crucial consequences not only the workers but also to the business. Various issues and conflicts arise which most of time are unfavorable to both parties. Careful analysis of the rewards and costs may present possible ways and approaches on how to manage and deal with the conflicting interests of the business and the (different levels of) workers.
The circumstances presented in Company ABC - the current situation that’s being faced by the banking institution as well as its workers, could lead to potential problems wherein both could lose its footing in the product and labor markets. At the least, six (6) major interrelated and to some extent overlapping issues were identified. These put forward conflicting interests whereby each holds central stakes in the continued existence of the business or the organization; these are (1) general skills and competencies, (2) organizational overhaul, (3) business efficiency and profitability , (4) compensation and wage dispersion, (5) resource allocation, and (6) benefits distribution. Preventive measures or negotiated agreements should be explored and taken so not to come across these concerns or worsen the condition which could put the entire organization in the red.
The rewards and costs of achieving and sustaining competitiveness in the global era are fundamental in the placement of interests both of the business and the workers. Advancements in technology alongside with the competitive nature of the market has led most if not all organizations to look for viable ways of augmenting its ability to perform in order to avoid extinction. Increasing the efficiency and productivity of the business which is generally reflected in the company’s capability to maintain its profitability and still sustain the needs of the business as well as its workers are the perceived elements for its survival. Altering the processes and structure of the organization are largely the utilized ways in response to the dilemma or challenges imposed by the situation. However, modifications in the existing structure and processes of the organization in order to adapt to the changing requirements of the competitive market have crucial consequences not only the workers but also to the business. Various issues and conflicts arise which most of time are unfavorable to both parties. Careful analysis of the rewards and costs may present possible ways and approaches on how to manage and deal with the conflicting interests of the business and the (different levels of) workers.
The circumstances presented in Company ABC - the current situation that’s being faced by the banking institution as well as its workers, could lead to potential problems wherein both could lose its footing in the product and labor markets. At the least, six (6) major interrelated and to some extent overlapping issues were identified. These put forward conflicting interests whereby each holds central stakes in the continued existence of the business or the organization; these are (1) general skills and competencies, (2) organizational overhaul, (3) business efficiency and profitability , (4) compensation and wage dispersion, (5) resource allocation, and (6) benefits distribution. Preventive measures or negotiated agreements should be explored and taken so not to come across these concerns or worsen the condition which could put the entire organization in the red.
Issues, Interests and Positions
1. General Skills and Competencies
The organization recognizes the need to keep pace with the changing demands and needs of the business and the market. In the last three years of the bank’s operations, older employees have contributed less than the younger employees. This didn’t mean that they exerted less effort but simply due to the acquisition of the skills needed in handling the new banking technology. In the interview conducted it showed that those who are at their 30s to 40s (regardless of gender) want more skills training and competency upgrading. As for those over their forties want the company to find ways of maximizing their experience, rather than simply introducing potentially job-shedding technological changes.
It is of equal importance and concern to the workers and the business to continually upgrade the skills and competencies required in order for the organization at the very least to maintain its survival in the market. There are two probable positions that could be taken in order to address the concern relating to the matter. In so far as the set of skills and competencies needed, developing training programs is one of the options that could be taken. Another, which could be deemed as a radical move, those deemed performing below the satisfactory level could be booted out of the organization.
2. Organizational Overhaul
This includes re-forming or re-organizing the structure, processes and design of the organization. The organizational structure, processes and design characterize the roles and functions carried out by each worker and are representative of the vertical and horizontal relationships within the organization. Moreover, these outline the appropriate channels and approaches for strategic information flow and decision making. The bank worries about losing its competitive edge if more efficient ways of organizing the work process are not introduced.
Modifying the organizational structure processes and design to achieve higher organizational productivity both operational and financial which is the aim of the business is of significant concern of the management. This is the most likely position to be taken by the company in order to effectively utilize and gain higher control over these concerns.
3. Business Efficiency and Profitability
The main thrust of the business is to deliver and achieve bottom-line returns which are chiefly dealt with higher asset utilization at prominently lower costs. This is the idea behind the business’s asset management and successful profit realization. This is of utmost concern of the business. Previously, the bank was perceived as financially stable having five solid years of increasing its profitability. Moreover, it was seen in the high productivity of the workers – with every peso spent on the individual worker it yields five pesos of net income. However, with the situation that could subvert the financial stability of the business diagnosing which works effectively and what’s hampering the efficiency and profitability could be the management’s action towards the resolution of this particular dilemma.
Increasing the bank’s efficiency to generate higher productivity while maintaining or lowering the overheads is the most likely position to be taken. This could be achieved by taking out those employing labor flexibilization measures. This is to maximize the current set of resources that the organization have while minimizing the cost of operations.
4. Compensation and Wage Dispersion
Wage is deemed as a central driving force (but not exclusive) in the delivery and performance of individuals within the organization. Determining the tolerable wage differentials in so far as seniority, position and rank levels in the organization is concerned as well as being compensated for the output and performance carried out is of importance to the company but exceedingly to the workforce.
The significant contributions to the business and organization such as increased profitability, output delivered and performance carried out is perceived to be directly related to the compensation to be given out. It could be seen on the survey conducted which had shown concerns on the part of those workers who are relatively new which raised the idea of pegging pay to skills and performance. Moreover, the demand made by the junior officers to increase the salary differentials between them and the rank and file as well as to the senior officers to be narrowed down.
Disparity in wage levels has an effect on the productivity or efficiency as well as motivation on the part of the workers. This also posits a relational conflict in both horizontal and vertical dimensions. The most probable position to be taken by the organization would be to provide performance and skill-based pay as well as to increase the base pay given to the junior officers.
5. Resource Allocation
The basic allocation of resources is the preference of which items to finance, what level of support it would receive and which items could be left unfunded. More often than not, businesses would invest on units or groups which generate higher productivity and profitability than those which were not. Moreover, those classified as high profit centers in contrast to those deemed as cost or low generating profit centers are mostly likely to be given high priority.
This concern is of equal interest on workers and management. The most probable position to be taken by the management would be in favor of the demands made by those individuals or group which yielded high levels of productivity and made significant contributions in terms of increasing the bank’s profitability. Failure to provide the pleas could result in the decreased morale and motivation of those workers which could eventually lead to their decreased productivity which also affects the business’ profitability. It could also be the case (which is more likely to occur) that these workers would leave the company and transfer to other organizations even to the competitors.
6. Benefits Distribution
Benefits more often than not are considered to be part of the entire wage or compensation arrangement given to the workers. Companies recognize the value of benefit packages in the organization as key factors in the individual’s consideration for an employment opportunity, employee morale and motivation as well as reduction in staff turn over. Thus, the benefits offered in the organization are quite essential to the overall employment picture.
It was identified that there were different needs in terms of benefits acquisition in the organization. These vary depending on the age group and (civil) status classification of the worker - workers who are married want child-minding facilities as oppose to those who are still single who prefers to have programs for fitness and wellness; those in their thirties to forties yearn for more skills training and competency upgrading in contrast to those over their forties and fifties who want the Bank to find ways of maximizing their experience and would consider an early retirement program plus assistance in setting up their own businesses should they retire, respectively. Moreover, the position of the union in general is simply to improve what is currently being enjoyed since the workers deserve to be rewarded for their hard work which brought the organization to where it is today.
This matter is of high concern to the workers. The needs may differ but they are not necessarily conflicting. It could be perceived that the needs cited if taken all together have varying levels of significance and appeal to the worker. If the organization decides to grant the need(s) one group over the other, it could likely cause tension and discord within the horizontal dimension. The most feasible action to be taken by the management considering the cost (as well as if it’s lucrative in the long term) is through the collective bargaining agreement scheme.
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