Wednesday, June 29, 2011

Does it matter that we are not for profit?

Very often in business organizations we have dysfunctional departments and even employees. Recently, I was asked by a membe of the Board of a non-profit organization to help them as several of the team were displaying a non-commital attitude and at times were disruptive and rude.

The Manager in the organization is near retirement and in brief discussions with staff, I found that the few, who were with the organization for many years, we happy with the status quo. They were allowed to come and go as they pleased and general policies and procedures did not seem to apply to them. Others who have been there for a shorter period of time are generally disgruntled about the manner in which the organization is run. Their relationship with the manager is strained. Most would indicate that problems existed but were hesitant to explain what these were. Staff have complained of a hostile work environment and general physical working conditions. None of these have been brought to the attention of any member of the Board. New staff could not articulate the vision of the organization or what current objectives were. None of the staff have been given a performance evaluation in three years.

The manager appears to backtrack on commitments and allows only some persons latitude in the daily operation of the organization. As a result the Board of Directors are not seeing where targets and objectives are being met, in fact they are about to lose significant funding due to the Manager's refusal to compromise with a benefactor on project details. The Board is now at risk of being sued for breaches. This will impact any future requests for aid from international agencies and cost the reputation of the orgnaization.

Currently the organization has two assistant managers, neither of whom have any substantive duties in the daily operations. Support staff must get authorization from the manager for almost every activity they perform.

If you were the consultant, what diagnostic tools would you use to determine the issues and what would be your recommendation for this board member?

15 comments:

  1. In determining the issues, the Open Systems Model would be useful. The Group and Individual level components of this system would be the main focus areas. The inputs and design components of each level would allow for a proper diagnosis. Factors such as technology, human resource systems, measurement systems, autonomy, performance norms,skill variety and personal characteristics of employees would be looked at. Additionally, interviews and questionnaires would aid in this diagnostic process.

    Recommendations:
    1. A performance appraisal system which facilitates active employee involvement should be implemented. Employees' views, needs and criteria along with those of the organization are included in this appraisal system.

    2. There should be training programs for the managers as well as other employees to help them to learn to function as a team, deal with and resolve workplace conflicts and cope with stress.

    3. Staff meetings should be held where employees are encouraged to express their concerns openly and respectfully. There should be a committment from management to address these concerns.

    4. Each employee should be given a job description so that job functions and responsibilities are clear.

    5. An organization structure should be developed, if none exists, outlining clear reporting relationships.

    Howard Pusey

    ReplyDelete
  2. In order to understand how the organization is currently functioning I would carry out a diagnosis with the use of questionnaires, interviews and unobtrusive measures. All members of staff would receive copy of a questionnaire. Questionnaires would be tailored suit depart, functions of individuals and targeted information. Information will also be garnered through the use of interviews. Different thoughts and comments from the interviews will be group to create as themes as possible. The unobtrusive measures would include the checking training records, standard operating procedures, quality records and past decisions that have been made. The organization will be treated as the open system it is. Therefore, some external entities and individuals associated with the company will be subjected to the questionnaires, interviews and unobtrusive measures, if possible.
    The finding from the various data collection methods would be compared for contradiction, consistence, areas of strengths and weaknesses. The finding will then be feedback to management. Based on the case studied, my recommendations are:
    1. Orientation program for new staff to get them familiar with the vision and objective of the company.

    2. Manager performance appraisal should be done bi-annually and staff quarterly.

    3. Improve working condition of employees.

    4. Give worker more autonomy and a voice.

    5. Improve communication between management and subordinates.

    6. Assistant manager should be functional and competent at the organization’s core activities.
    In addition before these are implemented get the organization and staff member ready for the change in for it to be a success.
    Jahfari Parsons

    ReplyDelete
  3. In analyzing the situation at hand the best diagnosis to apply would be the Group-level as this level speaks to the functioning of the employees of the organization and their impact on the organization’s operations. The design components of the group level consist of goal clarity, task structure, group composition, and team functioning and performance norms. Goal clarity describes how well the group understands their purpose, in the problem presented in the scenario is that there is no cohesion existing among the employees due to the fact that some employees are given preferential treatment. The tool that would have been utilized to gather information of the issues is interviews, surveys, observation and questionnaires.
    The recommendations that I would provide are:-

    1. Replace the manger with someone who is willing to establish and enforce certain policies and ethical values in the organization.

    2. Conduct orientation exercises with new employees where the vision and objectives of the company is clearly stated.

    3. Provide seminars on the company and its policies that govern the organization to both new and existing staff.

    4. Institute periodic performance evaluation exercises from top management to low level staff and use this as a medium to indentify and reward employees or groups within the organization who perform well.

    5. Quarterly staff social should be organized so as to build and foster group harmony and thereby increasing the communication flow positively amongst the new and old employees.
    Lincoln Taylor

    ReplyDelete
  4. Organizations are usually established with sustainability in mind, irrespective of whether they are for profit or non-profit in nature. There are isolated cases in which an entity is set up to accomplish a set of goals and is then dissolved or goes defunct, but in general the idea is that organizations are established for "the long haul." That said, a for-profit entity is expected to be profitable and a non-profit organization is expected to be positioned in such a way that it remains viable ie. it is able to attract funding from national or international donor partners so that it can continue to function and fulfill its mandate. In other words, a non-committal attitude has no place in either setting (for-profit or non-profit).

    I would recommend a group intervention - a process intervention to get the staff to evaluate their decision-making style, the general culture and their general approach to business. They need to diagnose their own processes, relationships and organisation structure and come to the realisation that the norms that exist must go. A third-party intervention, though it "cannot resolve all interpersonal conflicts in organizations" (Cummings & Worley, 2008, p. 259) would go a far way in resolving the conflicts and interpersonal issues.

    To get the issues out in the open, I recommend one-on-one interviews with the staff coupled with the assurance that their opinions will be handled with the utmost confidentiality. There needs to be some communication from the top down that there will be no repercussions for employee candor. The board needs to review the current staff complement and determine the changes that need to be made to ensure the change efforts are sustained.

    Peter Boothe

    ReplyDelete
  5. In diagnosing the company's issue all the data collections tool would be utilized ie. Questionnaires, despite not affording persons to really detail their issues, if tailored properly will capture the intended information and will reach wide cross sections of persons. Interview is another tool that would deem to be effective in this scenario. One on one interview would allow persons to feel more compelled to express themselves, especially if they are made to feel comfortable in doing so; with this tool the consultant would be able to lead the conversation in the direction that would lead to more information. Observation is another good way to collect pertinent information, this way the consultant is able to see firsthand what the behaviours are the unobtrusive approach could be looking at grievances reports, the last set of performance that was ever done and the financials.

    After these are collected than there are tools that would be used to analyze the information collected in order to establish what the issues are. The first is the qualitative tools, which includes the content analysis which seeks to analysis information especially from the interviews into meaningful categories eg. categorizing the various answers in different categories and themes. The other element of the qualitative tool is the Force-Field Analysis, this looks at information that is against and for the changes eg. Information and attitude from the employees who have been with the company a long time versus the new ones.

    The other tool that I'd use is the Quantitative tool which would include the mean, standard deviations, frequency distribution, scatter grams and correlation coefficients and difference tests. These would be used to put the financials in perspectives and in a way that is easily understood by both parties i.e. consultants and clients.

    As a result there are recommendations that i would think prudent in making the organisation more efficient and effective.

    1. developing a succession plan that would see a clear successor of the retiring manager.

    2. create new policies and procedures that will dictate and regulate the behaviours of all, this should include punitive measure to deal with the disruptions and rudeness.

    3. Enforce these policies through empowering the assistant managers by enforcing the protocol of the department.

    4. I will agree that implementing programs that will allow gameful interactions among all levels will help with the interrelationship issues, but managers must be educated about fostering the trust of their employees hence assisting with the disgruntlement and distrust. So seminars will be recommended for the managers.

    5. Let the vision and objective be open information for all staff to know. Have vision and objectives being displayed on their computer screen as screen savers and have intermediate meetings with all to discuss same. This will allow staff to freely accept and own them.

    6. The Board is deemed ineffective because they seem to be clueless about what is happening as a result i would replace the board or at least employ a staggered approach.

    7. Of course a performance evaluation would be in order, so one would be conducted.

    There are a host of recommendations that can be made and the list above is not exhaustive.

    ReplyDelete
  6. It is important to get background information to determine the issues facing the company. Given the reporting relationship between the Board and the Manager, it is important that all members of the board are interviewed especially the Chairman to get some idea about the performance of the Manager. It is important to determine if the management team was assigned performance targets by the Board as this would form the basis for a review of the performance of the team and individual members.

    I would also recommend using the six-box model which is a framework developed by the American analyst Marvin Weisbord to assess the functioning of organizations. It is a generic framework and is intended for use across a wide variety of organizations. It is based mainly on the techniques and assumptions of the field of organizational development.
    The six-box model is comprised of the following components (boxes):
    1. Purposes: What 'businesses' are we in?
    2. Structure: How do we divide up the work?
    3. Relationships: How do we manage conflict (coordinate) among people? With our technologies?
    4. Rewards: Is there an incentive for doing all that needs doing?
    5. Leadership: Is someone keeping the boxes in balance?
    6. Helpful mechanisms: Have we adequate coordinating technologies?

    ReplyDelete
  7. Organizations in general are dependent to some extent on the contribution of its human resource to achieve its objectives and ultimately make a profit. This is especially so for service driven organization. Looking at this particular company it is clear that there is a greater need to define the roles of its employees, set guidelines for behavior as well as formalize its processes.

    However some of the behaviors displayed by staff are merely symptoms of a deeper problem. Therefore in order to diagnose the root cause the use of one on one interview, questionnaires and unobtrusive measures will be necessary. This is so as using questionnaires will see all employees getting involved through their participating in responding to the questionnaires. Interviews will provide expansion and relevant clarification that will aid in understanding the issues. By reviewing the company records will help in garnering more information on the company issues.

    Based on findings and issues raised the following is recommended: the company should implement work designs that will clearly outline each employee job. Work design involves organizing tasks, people and technology that will lead to job performance (Cummings & Worley, 2008). It is important that employees task is clearly defined which will eliminate time wasting and inefficiencies. Once roles are clearly outlined then a performance appraisal system should be developed in order to monitor job performance and role significance.

    In addition instituting group processes that encourage the appropriate interaction between staff which will result in efficiency through effective job performance is recommended. Group processes also encompass understanding the communication styles, group member roles, norms and leadership styles present in organization in order to determine the deficiencies and apply relevant interventions. This is critical as based on the company in question there were deficiencies noted in the current communication style, leadership as well as group roles and norms. Therefore implementing group processes interventions will greatly improve the organization functioning.

    Paula Johnson

    ReplyDelete
  8. It should not matter that an organization is “not for profit”; it should still be operated as a business, following all the aspects of running a good business. As an OD consultant I would ensure that point is stated. In an environment where employees are afraid to talk because out of fear of losing their job then observation is a good diagnosis tool to be used to determine what are the issues. This must however be done in a manner that is not obvious to the employees or the management that they are being observed or it may distort the process.
    Questionnaires could also be used but we must ensure that when these are distributed the employee’s confidentiality y is guaranteed so that the questions can be answered truthfully. Some interviewing may also have to take place, as an OD consultant you must be aware, and be able to make assessments based on person’s body language, those unspoken words that are being used.
    Analysing the data is critical to making effective recommendations to the Board. I therefore recommend that:-
    1) The Board meets with the management team to determine what are their challenges.
    2) The vision and the goals of the company should be reiterated at that point.
    3) The management should be given an opportunity to decide whether or not they want to continue working for the company.
    4) The manager who is near retirement should be retired.
    5) If the other manager wants to stay, then the Board should outline what are their expectations.
    6) The company is small therefore the managers should be a part of the organization operations in order to ensure that objects are met.
    7) If they stay then training of the management should be done to develop their management skills to include interpersonal.
    8) There should be some established guidelines of the type of behavior that is expected, create a code of ethics book (which is done in some companies) outlining what are the rules and the consequences for non-adherence.
    9) Clear objectives must be set for management and staff and an outline should be given of the consequences if these are not met.
    10) The Board should try to meet with its benefactors to save with the funding and give them timelines as to when they will see improvements.
    11) The manager should be told to have a meeting with staff and inform them of the way going forward.
    In any OD process evaluating the change is essential, therefore regular periodic assessment must be done to ensure compliance or to determine if anything else needs to be changed.
    Employees must become aware that once you are in a job despite where you work, you must do it to the best of your ability or leave and give others an opportunity.

    ReplyDelete
  9. The case in question is classical of how many non-profit organisations are being managed especially when it is headed by a manager who is “full of self” or near retirement as in this case. Based on the information contained in the report it is clear that the problem is with management failure to lead, motivate and provide direction to its employees, and by extension the gross failure of the board to hold the manager accountable. It appears that the manager and the board is in “bed with each other” thus rendering the board ineffective in carrying out its primary function that is to increase shareholders values and govern in the interest of the organisation.
    Given the state of nature I would use a combination of questionnaires to quantify the employee’s responses, face-to-face interviews which are a source of “rich” data, and observation in which the behaviours and norms of the employees can be observed and documented.
    Having concluded the diagnostics and analyse the data my recommendations are as follows:
    1. The manager is to be sent on early retirement and replace with someone with the requisite qualifications and competence.
    2. The organisation structure to be modified to include two primary departments headed by a deputy manager with clear reporting relationships defined at all levels.
    3. A strategic plan is to be developed for the organisation which is to be communicated to the staff.
    4. Measurable departmental objectives are to be developed for each department.
    5. Employees given clear performance objectives or goals that are smart, measurable and time bound.
    6. Orientation workshops to be conducted for all staffs
    7. Grievance procedures to be developed and implemented and communicated to all staff
    8. The board needs to have better oversight of the activities of the organisation
    9. Each board member is to have tenors not exceeding three years
    10. Employees who have been working with the organisation for a number of years needs to be reoriented and brought into the loop assist with the changes being proposed for the organisation.
    11. All managers are to be sent on management training to include HR training.

    William Malabver

    ReplyDelete
  10. FOR Lucinda:
    One of the greatest challenges to the success of change is the transition from the status quo to a whole new way of thinking and operating.

    When I was a child there was a story of several mice that lived in a house which had as one of its occupants, a cat. This cat made life very miserable for the mice so they called a meeting and brainstormed as to the possible ways of getting rid of the cat. One idea was settled on. They would purchase a bell, hang it around the neck of the cat, thus warning them when the cat was coming. They all agreed that this was a brilliant idea but the question now was, “who will bell the cat”

    We can equate this question to Jamaica as a country, who will initiate the change? One cannot in fairness answer this question without looking at our historical data and asking ourselves, when we can move pass the backra massa complex and stop making a bunch of politicians dictate the way forward.

    The O.D. consultant has his or her work cut out for them. How do I get a diagnosis of the issues and concerns that remains unbiased? We are essentially a two party country and depending on the side of the fence you are on, then the answer is customised to benefit the favoured party.
    Therein lies the problem. Why the need for change when, dependent of the party in governance, there is a kickback somewhere in there for me.

    However one cannot argue the fact that, when we want to unite as a country and say with one voice, the issue at hand, no one demonstrates this better than us. Wait for the upcoming world games and look at the reaction of the citizenry of this nation when one of the country athletes is on show, to prove my point.

    How do I now, as the O.D. consultant, capitalize on this zeal and unity and transform it into the need for change that is a shared vision for all. And having “captured” the enthusiasm , how do I sustain it?

    ReplyDelete
  11. FOR Sharon:
    It does not matter that the organization is “not for profit”.
    As the OD consultant, I would employ the following diagnostic tools to determine the issues:
    - Interviews – can ask direct questions; can be done individually or with a group
    - Questionnaires - the responses can be easily summarised and can be done for many persons at the same time
    - Observation – can view situations as they happen; can walk around and note actual occurrences and behaviour
    - Unobtrusive measures – can take an objective look at the company’s records re grievances, attendance and other correspondence like minutes of Board meetings.
    My recommendations to the Board member would be to engage in:
    - Group process intervention such as intergroup relations which includes intergroup conflict resolution – specifically designed to help groups work out dysfunctional relationships; have occasional socials
    - Third party intervention, example by me, the OD, to focus on the inter-personal dysfunctions in the social relationships – helps in conflict resolution
    - HR intervention to outline the goals and vision of the organization and include this in an orientation programme for the new staff; outline team processes and goals and ensure everyone has a clear job description
    - Team process interventions such as process consultation and team building activities to help the group to foster harmonious working relationships, aim to accomplish tasks together and therefore more commitment to the organization and the tasks at hand
    - Performance management intervention with periodic performance appraisals (six-month intervals in the onset) to provide feedback; establish appropriate reward system; goal setting (management by objectives) with the group goals aligned to the business strategy to ensure performance is measurable and there is an ultimate goal
    - MBO – have regular meetings – manager/employees for goal review, problem-solving, information sharing/gathering,
    - Training for both management and staff – including how to establish healthy group norms and behavior patterns; how to develop camaraderie and build interpersonal relationships
    - Succession planning – starting with the manager who is near retirement – involve a mentor in this process both for the outgoing manager and the incoming.

    ReplyDelete
  12. FOR Jason:

    As the OD consultant I would utilize the model for diagnosing organization systems, where all three levels would be applicable.
    First, the organization level where the structure, culture and human resource systems would be evaluated to find out if their characteristics and strategies are applicable for organization effectiveness.
    Secondly, I would look at the group level to ensure teams or units have clear goals and tasks, evaluate to find out if they are functioning as they should be, and to find out the group norms that could be contributing to the hostile situation that exist.
    Finally, individual assessment of both managers and team members would be done to evaluate their suitability and effectiveness for the position. This will entail skill assessment, knowledge of role in the team, autonomy of their roles, try to measure the level of job satisfaction and how all of these elements affect their performance.
    The diagnostic tool I would use is interviews, both group and individual interview. I would interview the managers as a group to find out what is right and what is wrong with the structure, culture, systems (HR, operations) and strategy overall. Then I would interview individual managers to ascertain their level of job satisfaction, job fit and team cohesiveness. I would do the same for the non management team, but questions or discussion would be designed to fit their role in the organization.
    Recommendations
    1. Evaluate the work environment and make adjustment where necessary or possible, example lighting, decor, equipment, work station, office organization, and changes to other facilities that staff members use.
    2. Develop and issue job description and also job specification for each role.
    3. I agree with Howard’s point that a performance appraisal system should be design, but the system should include managers being appraised as frequent as the general staff. This will eliminate complacency and keep individuals eyes on the company’s goals and objectives.
    4. Evaluate the current communication system and channels and design a system where communication is more effective. This may mean assigning new roles to persons or even eliminating or adding links from or to the system.
    5. Develop or source specialized training for persons who have gaps between what is required and that which exist as it relates to task performance or other attitudes that can or need to be changed to be in line with the organization culture.
    6. Educate or re-sensitize individual with standard operating process, code of conduct, code of ethics to ensure full compliance, all persons in violation of the rules and regulations should be punished accordingly
    7. A reward system should be developed for employees who display outstanding performances.

    ReplyDelete
  13. FOR Chamion
    All organizations whether for profit or not are governed by the same sets of rules and ethical
    conducts in the performance and conveyance of their duties. A non-profit organization is an incorporated
    organization which exists for educational or charitable reasons and this organization does not distribute its
    surplus funds to trustees or shareholders, but instead uses them to help pursue its goals.

    Every organization needs a functional board of directors, a good managing director and a good management
    team to function effectively in the pursuant and achievement of their goals and objectives. The organization in
    question in my humble opinion has none of the above and hence their poor peerformances and de-motivated
    staff members.

    To do a comprehensive assessment of this organization, I would develop a performance appraisal tool. This tool
    would look at the organization in terms of the request that would come about, the turn around time in dealing with
    the requests, the success rate or projects/request. Hence we would look at requests and the number of successful
    completions.

    As a consultant I would then look at the compostion of the board and performance of each member to determine their
    effectiveness and role in the organization. the manager and his team would be evaluated using the performance sustems
    and thier futures in the company would be determined by their performance outcomes..

    When an organization is not performing because of functional reasons, I would recommend changes from the top, so my
    changes would start at the board level and down.

    ReplyDelete
  14. FOR Denisha
    In an effort to gain a greater understanding of how the organization operates and to arrive at the correct diagnosis, the consultant will choose to gather and analyze appropriate information received from observations, interviews and questionnaires.
    By observing important variables such as group dynamics, how individuals go about performing their job functions, communication between management and employees, how conflicts are settled between individuals at different levels and how information is disseminated throughout the organization, will allow the consultant to get a clearer understanding of the issues that the organization is facing from his personal perspective. The consultant was told that employees were disruptive and rude but in his observation he can determine if this type of behavior is displayed on both sides, that is, if management treats workers with respect and allow them to feel that they are valuable to the organization.

    The consultant can also choose to use unstructured interviews that involve one on one interaction with key employees, allowing them to express their views freely. For example in this particular case, questions such as ‘What are the challenges you are currently facing in performing your job functions,’ ‘How does your job function ties in with the organization's objective,’ Do you think the organization is being managed effectively,’ can be directed to employees, so the consultant can determine whether individuals are aware of their purpose in the organization, whether problems exists that is preventing employees from performing at an optimal level or if the process involved in carrying out job functions should be modified.
    Questionnaires can also be used in determining the issues affecting the organization. As it relates to this case, the consultant can choose to use an open-response questionnaire that is specific to the organization. The questionnaires will allow respondents to give their opinions on how effective leadership, communication, job design, decision making, employee development and growth are imminent within the organization.
    In analyzing the case we can see that the organization is being mismanaged which is evident by the fact that the leadership, structure, job design, policy and procedures are poorly defined and fail to direct task behaviours effectively. In addition workers are not clear about their job responsibilities and how it fits in with the rest of the organization, decision making is centered at the top and there is no change programme mechanism in place to direct the organization.

    Recommendations
    1.Employees should all have a clear understanding of what the organization objective is. This objective should be incorporated in their mission statement and general policies and procedures.
    2.The organization structure and processes should be aligned with the organization objective.
    3.Communication channels and leadership roles should be clearly defined.
    4.Decision making should be disseminated throughout the organization.
    5.Workers should be given greater responsibilities and autonomy.
    6.Members of the Board need to appoint an employee representative to sit in on Board Meetings, so that they are aware of the issues that are discussed at these meetings.

    ReplyDelete
  15. FOR Angella
    Conflict can “prevent people from working together constructively, destroying necessary task interactions among group members” (Cummings & Worley, 2008, p. 259). Additionally, “too much conflict can be dysfunctional for both the people involved and the larger organization” (Cummings & Worley, 2008, p.261). This, evidently, is the case with the non-profit organization. Assistant Managers are bypassed by the staff they lead, the Manager has strained relationships with several employees, and the organization has lost needed funding and the Board is at risk of being sued due to the negligence of this uncommitted, biased Manager.

    In order to determine the cause of these issues, I would use interviews - individually with the Manager, the Assistant Managers and the staff in general (old and new). I would also observe the group, make notes and use the data gathered in further interviews and in the intervention process. Donna Gallagher (OD Consultant) on her website donnagallagher.com explains:

    The things I note when conducting process observations are: who talks when, who interrupts and who yields the floor, who speaks and who doesn’t, and how decisions get made. I also note nonverbal communication (sitting forward, arm-crossing, hair twirling, and the like). Although I make notes to myself about possible areas of inquiry, I do not interpret what I see—I simply log observations.

    This I believe would provide me with the needed data to determine the root causes of the conflict.

    I would then recommend a third party intervention, facilitated by the OD Consultant (me). In this intervention, all members would be able to express themselves and have the issues addressed. Also, since the manager will soon retire, I would not recommend that he be fired but that he is sent on early retirement as he seems to be the main contributor to the problem (based on information presented in the case).

    I would also recommend that an organization chart be created and that each member of the team be presented with a job description that is arrived at through the intervention process.

    ReplyDelete