Organization and Labor Management (CENG6104)

Individual Assignment (20 %)

Submission date: Before the final exam

Question #1

Organizations operate in fluid environments; therefore, it is vital for them to align and re-
align their elements and structure in order to survive and compete effectively. On the other
hand, organizational theories (pre-classical, classical, neo-classical and modern theories) have
their own advantages and flaws. Prepare a critique on each organisation theories.

Question #2

A construction company stores various items (see Table below) in the central stores. The
average annual consumption and cost per unit of items stored are given. Classify the items
using ABC analysis.

Name of the item Average annual Average cost

consumption (No.) per unit (`$)
a 5,000 45.00
b 1,000 90.00
c 2,000 225.00
d 4,000 11.25
e 50 300.00
f 6,000 62.50
g 2,000 67.50
h 4,000 18.75
i 50 375.00
j 250 105.00
k 200 187.50
l 50 150.00

Question #3

A workday begins each morning at 8 A.M. in the in a construction consulting office. The staff
is composed of the General manager (GM), two secretaries, three office engineers, two clerk-
typists, and three file clerks. Until last year, the office operated smoothly, with even
workloads and well-defined responsibilities.

Over the last year or so, the GM has noticed more and more disagreements among the clerk-
typists and file clerks. When they approached the GM to discuss their disagreements, it was
determined that problems had arisen from misunderstandings concerning responsibility for
particular duties. There is a strong undercurrent of discontent because the clerk-typists feel
the file clerks have too much free time to spend running personal errands and socializing. On
the other hand, the secretaries and clerk-typists frequently have to work overtime doing work
they believe could easily be picked up by the file clerks. The file clerks claim they should not
have to take on any additional duties, since their paychecks would not reflect the extra
responsibilities. Each person in the office has a general job description that was written
several years ago.

However, the nature of most positions has changed considerably since then because of the
implementation of the computer system. No attempt has been made to put these changes in
writing. The GM formerly held staff meetings to discuss problems that arose within the
office; however, no meetings have been held in several months.

What actions would you recommend to the GM?

Question #4

XGM has encountered difficulty over the last few years in filling its middle management
positions. The company, which is engaged in Construction of real estates, is organized into
six construction departments. Top management believes it is necessary for the managers of
these departments to make many complex and technical decisions. Therefore, the company
originally recruited strictly from within. However, it soon found that employees elevated to
middle management often lacked the skills necessary to discharge their new duties.

A decision was then made to recruit from outside, particularly from colleges with good
construction management programs. Through the services of a professional recruiter, the
company was provided with a pool of well-qualified construction management graduates.
Several were hired and placed in lower management positions as preparation for the middle
management jobs. Within two years, all these people had left the company.

Management reverted to its former policy of promoting from within and experienced
basically the same results as before. Faced with the imminent retirement of employees in
several key middle management positions, the company decided to call in a consultant for
solutions.

a) Is recruiting the problem in this company?

b) If you were the consultant, what would you recommend?
Question #5

A large public utility has been having difficulty with its performance evaluation system. All
operating employees and clerical employees are evaluated semiannually by their supervisors.
The form the organization has been using for Performance Evaluation is given below; it has
been in use for 10 years. The form is scored as follows: excellent = 5, above average = 4,
average = 3, below average = 2, and poor = 1. The scores for each facet are entered in the
right-hand column and totaled for an overall evaluation score. In the procedure used, each
supervisor rates each employee on July 30 and January 30.

The supervisor discusses the rating with the employee and then sends the rating to the human
resource department. Each rating is placed in the employee’s personnel file. If promotions
come up, the cumulative ratings are considered at that time. The ratings are also supposed to
be used as a check when raises are given.

The system was designed by Bethlehem, the human resource manager who retired two years
ago. Her replacement was Daniel. Daniel graduated 15 years ago with a degree in business
from Addis Ababa University. Since then, he’s had a variety of work experience, mostly in
utilities. For about five of those years, he worked in human resources.

Daniel has been reviewing the evaluation system. Employees have a mixture of indifferent
and negative feelings about it. An informal survey has shown that about 60 percent of the
supervisors fill the forms out, give about three minutes to each form, and send them to the
human resource department without discussing them with the employees. Another 30 percent
do a little better. They spend more time completing the forms but communicate about them
only briefly and superficially with their employees. Only about 10 percent of the supervisors
seriously try to do what was intended.

Daniel also found out that the forms were rarely used for promotion or pay raise decisions.
Because of this, most supervisors may have felt the evaluation program was a useless ritual.
Where he had been previously employed, Daniel had seen performance appraisal as a much
more useful experience, which included giving positive feedback to employees, improving
future employee performance, developing employee capabilities, and providing data for
promotion and compensation.

Daniel has not had much experience with the design of a performance appraisal system. He
believes he should seek advice on the topic.
Write a report summarizing your evaluation of the strengths and weaknesses of the present
appraisal system. Recommend some specific improvements or data-gathering exercises to
develop a better system.

Performance Evaluation

Supervisors: When you are asked to do so by the human resource department, please
complete this form on each of your employees. The supervisor who is responsible for 75
percent or more of an employee’s work should complete this form on the employee. Please
evaluate each facet of the employee separately

Facet     Rating     Score Total

Quality of work Excellent Above Average Below Poor
average average
Quantity of Poor Below Average Above Excellent
work average average
Excellent Above Average Below Poor
Dependability at average average
Poor Below Average Above Excellent
work Initiative average average
at work
Excellent Above Average Below Poor
Cooperativeness average average
Poor Below Average Above Excellent
Getting along average average
with coworkers
Toal
Supervisor’s
signature  

Employee name  

Employee number