This case study was done as a requirement of Professional Qualification in Human Resource Management, Stage 02. I am highly grateful to Mr. C Gannile for his guidance as well as for providing necessary information, which help me in completion of this case study. My thanks and appreciations go to my colleagues who have helped me out with their abilities.
Content 1. Acknowledgement 2. Content 3. Executive Summary 4. Inroduction 5. Problem Analysing and Solutions 6. References Executive Summary Principles are fundamental norms, rules, or values that represent what is desirable and positive for a person, group, organization, or community, and help it in determining the rightfulness or wrongfulness of its actions. This alakkaty foundation is rurrning only on morals and principles. In todays world it is bit difficult task to train and create such culture in whateve rthe Orgazination.
But according the case study we can see that it is very successful and they are operating well for last 15 years. Basically, thiese principles and morals should comes from intrinsically. And the advantage of that is, once the people get used to that kind of culture they refrain doing wrong and whatever the difficulty comes , they try to do the work in a correct path way. So the counselling and mentoring will help a lot for create such mentality and attittude withing the people. Introduction
The Chairman of Alakkaty foundation – AF, Chennai was a former Accountant in a multi- national building construction company where it was believed that, like many other organizations, bribery, corruption and underhand dealing are all a part of a running a business. But he decided that Alakkaty, also a construction company, will be different, running only on morals and principles such as: * Virtue, the morale excellence evidence in my life as I consistently do what is right – No bribes or incentives of any sort was offered to anyone in any organization to be successful in securing the tenders or anything else.
Therefore, their overheads were minimal. With a reasonable profit margin, their pricing became very competitive. They never advertise their services as customers do the advertising for them by word of mouth. * Benevolence, giving to others basic needs without having as my motive personal reward – He realized that his workers build shelter for others but they themselves, the majority of them , were without a roof above their heads, surviving on pavements and in make-shift shanties. The company started building flats for the employees who do not have a proper home. Responsibility, knowing and doing what is expected of me; Discernment, understanding the deeper reasons why things happen; and Sensitivity, perceiving the true attitudes and emotions of those around me – No employee was ever terminated for whatever reasoning AF. The labourers include alcoholics, drug addicts, pimps, gamblers, crooks and the like. Such people, when discovered after recruitment, were all subjected to intensive counselling, in extreme cases, even extended to family members. Such counselling was steeres by a committee headed by the Chairman himself. If I recruited someone because he seemed good to me and thereafter he became bad, I can get rid my headache by firing the person but it certainly does not absolve me from my responsibility, as I made the mistake in the first place” Alakkaty has been in operations for over 15 years and five years ago it was made into a public quoted company as it achieved significant business success. This is evidence that it is possible for an organization to be a company of character and operate fully on morals and principles and still be successful and achieve its objectives.
Analysis 01. By analysing the given case study ,YES, I feel that an organization can run based on principles & it could be succesful to a considerable extend. In Today’s highly competitive bussiness world, there are different different organizations, in differennt different industries and those will have different different cultures. This Alakkaty Foundation was an Organization with a culture which admires & promote the morals & principles. What is an Organizational Culture ? Morals & Principles?
We can define organizational Culture as ; The values and behaviors that contribute to the unique social and psychological environment of an organization. Organizational culture is basically, the sum total of an organization’s past and current assumptions, experiences, philosophy, and values that hold it together, and is expressed in its self-image, inner workings, interactions with the outside world, and future expectations. It is based on shared attitudes, beliefs, customs, express or implied contracts, and written and unwritten rules that the organization develops over time and that have worked well enough to be considered valid.
Also called corporate culture, it manifests in (1) the ways the organization conducts its business, treats its employees, customers, and the wider community, (2) the extent to which autonomy and freedom is allowed in decision making, developing new ideas, and personal expression, (3) how power and information flow through its hierarchy, and (4) the strength of employee commitment towards collective objectives. It is termed strong or weak to the extent it is diffused through the organization. According to the given case study we can say that Alakkaty Foundation was a company which fully operates on principles ;amp; morals.
The culture of Alakkaty Foundation was more into developing people and let them feel the sense of belongings. Also the culture of Alakkaty was more employee oriented and it seems to be the Management Style of the chairperson is more towards the democratic leadership style. With that kind of background an organization can run on morals ;amp; principles. The followings are the principles practicing in Alakkaty Foundation. Virtue Because of the no bribes or incentives or any sort was offered to any one in any organization they can be achieved many goals: Their overheads were minimal • With a reasonable profit margin • The pricing became very competitive. • They only use word of mouth as the only advertising method. Benevolence Most of the employees live in the shanties because they do not have proper houses to live. After the company realized their reality they built shelter for their employees. Because of the company decided to increase the health and safety rate in the company the new chairman started building flats for his employees. It makes some advantages such as, • A sense of belongings to the employees A feeling of protection • It increases the loyalty of the employees towards the company. • The investment is for the long term • Human resource is the most valuable asset to the company so it is important to look after them in order to touch their hearts. • It gives a sense of ethical responsibility about the company to the other customers. • Most importantly the company fulfills a basic requirement of a human being. Responsibility The chairman of the companynever terminated any employee for whatever the reason in Alakkaty Foundation.
Most of the employees are alcoholics, drug addicted, pimps, grumblers, crooks and the like. They counseled the employees who are in need even the family members. The Chairman always takes the responsibility of recruiting such people and he always guide them and advise them to be good people to the society. 2. According to the case study, I think the main challenge for the Chairman of Alakkaty Foundation is changing Attitude of people based on the principles of the Organization. Because as per the case study, it says that the recruited people are from different educational ;amp; Social environments.
Most of them are labourers include alcoholics, drug addicts, pimps, gamblers, crooks and the like. It is difficult to Change the moral of the management as well as to make employees trust on the principles and moral. At this point, the principles of sensitivity and benevolence has encourage the organization to address those problems. It will help to enhance the effectiveness and the efficiency of the laburers as well as the management. When dealing with employees from different cultural backgrouds various kinds of grievences can be arised. Grievence may be real or imagine.
It is essential that grievence is brought to light discuss and the matter resolve to the satisfaction of all concern. Faileur to do so will only result in the grievance becoming worse in source of conflicts and eventually ending in a far more serious problems. Political and legal environment of the country is a part of the main challenge that Chairman has to addressed. also the competitors would be a challenge , as the most competitors in construction industry will run with bribery and corruption. 3. Factor that are strengthing the organization are visible and some are invisible. t is your responsibility to understant those factors of the business and encourage your employees to achieve the organizational goals and objectives. It is good know such factors of the organization by its members, and the way how they are going to use such advantage of thoese strenghts to achieve the organizational objective. According to the case study, the main pillars of strengthening the AF are leadership style, values, organizational culture and motivation practices. The leadership style of the management of the AF accomplish the oranizational objectives accordingly.
Ledership style also affecting on employees job satisfaction. As in many organizations, AF also have it own values and principles which direct organization to be success. Those values and principles are refers to the ideas what a group believe right or wrong. Therefore Values and principles can consider as another pillar which drives organization to the success. AF has combined organizational culture. It has employees from different backgrounds and the way they behave in the organization different from one to another.
So AF has to create it own culture, unless it is difficult to the deal with the problems that are arise due to the various circumstances. Also the dedication and the attitude of the employees are very stong of this Organizaition. As in the beginning it says that the most labourers are alcoholics, drug addidct and pimps ;amp; etc. In our society, those type of people are not treated well and hardly give chances to develop. But this AF has recognized their abilities and counsel them to understand their importance to the society and their value.
That concept has boost their moral and motivation. As the organization has effective counselling programme, the employees get an vast opportunity to resolve their problems by analysing themselves. This will helps to create a self-disciplined culture and it reduced the gap between the employees and the Management. Not only that, but also it will enhance the relationship among the employees. 4. Eventhough the Organization can run on the principles and moral, I believe there should be a systematic way of managing with polocies and procedures.
By analysing the case study, I think there should be some changes to be done in the following areas; * Recruitment Procedure As the Organization recruit people such as, alcoholics, Drug addicts and so on, I think there should be a effective screening and short listing procedure. Because, we should take the correct decesion at the first place. By introducing a system such as, to check the competency level of the employees and their willingness to work during the interview process it will help to maitain discipline of the organization as well as the quality of the work deliverd. Training and development It seems to be that there is no proper method of Training ;amp; development of employees. I strongly believe that well trained and efficient workforce is crucial for the further development of AF.
Such as AF will always strive to attract and retain employees with the special attitude. After their engagement, the AF must provide them with oppertunities to advance skills and professional expertise while providing the counselling. Also , this should go with the new techniques that organization can use for there further development. Introducing general policy on personal conduct This is to maintain the high standrads of conduct and work performance to ensure the AF maintain its reputation with customers and suppliers. Because, the people who worked as laboures are basically, drug addicts and alcoholics. This involves all employees observing all policies and procedures, treating colleagues with curtesy and respect and treating customers in a accceptable manner. * Advertising At present, there is no proper advertising method for Alakkatyy Foundation as it is dine by word oof mouth.
To be more recognized organization, I believed there should be a effective advertising method such as using news papers or mass media.
References * http://www. business. gov. au/BusinessTopics/motivatinltheories/Pages/dfault. aspx (accessed on 28th August 2012) * Human Resource Management (2011), Snell, S. , Bohlander, G. , Vohra, V. ; 4th Edition, Cengage Lerning (pvt) ltd. India * Study Pack for CCHRM (2010), by IPM Sri Lanka * Lecture notes given by Institute of Personnel Management SL for Module 12(2012)