The following is a report prepared by management consultants to the CEO, RKD Transport touching on challenges facing the organization from a perspective of organizational behaviour. The report seeks to identify critical issues as well as problems the managing director of RKD Transport is facing. It is expected that, through an integration of theories and concepts of organizational behaviour as applied to challenges and problems being experienced at RKD Transport, the report will come up with suggestions in form of recommendations geared towards turning around work performance at RKD Transport.
Secondly, the recommendations of this report are aimed at assisting the managing director of RKD Transport in the change process, which intends to improve leadership, communication, decision-making, conflict management, organizational politics, power control, organizational restructuring, organizational culture, organizational change, organizational development, workforce motivation as well as input into job design aimed at achieving efficiency and cost effectiveness. This report is prepared for the managing director of RKD Transport.
The report contains suggestions, which aims at addressing the following specific problems and challenges evident in RKD Transport. The first issue that is addressed in this report is the lack of proper leadership in the organization. The leadership of RKD Transport has failed to offer guidance and to be in control of situations at RKD Transport. The numerous challenges such as low employee morale, scandals, as well as high staff turnover currently being witnessed in the organization are all a result of poor leadership.
This report aims to offer solutions to the challenge of communication, which the organization is currently experiencing. Communication at RKD Transport has totally failed. It is hard to tell what type of communication the organization has adapted as there are cases whereby staff at the bottom line blatantly disobey directives from their supervisors a pointer to the fact that there is a problem of communication in the organization. It is also evident from the case study that the management at RKD Transport is not sure of the best medium to use to communicate on different occasions.
This reports offers suggestions to solve that problem. Another problem, which is a major concern and contributing factor to the failure currently being witnessed in the organization, is poor conflict resolution methods. In addition, the report handles the challenge of organizational diversity that the organization seems to have been unable to address as evidenced by numerous stereotypes and other forms of discrimination that goes on in the organization with the full knowledge of the management.
So as to be objective in the report findings and the recommendations thereof, the management consultants tasked with this challenge of helping RKD Transport to turn around used a scientific management approach whereby issues were studied over a period of time through conducting of interviews, collection as well as analysis of data as well as the use of data collection methods such as observation. The consultants largely borrowed from previous financial and performance reports so as to arrive at conclusions especially those relating to the internal and external processes in the organization.
Finally and of very much importance was the reliance on academic sources such as journal articles and peer reviewed articles so as to draw critical analysis in the application of theories and concepts of organizational behaviour to the RKD Transport case. Finally, this report offers recommendations and the way forward, which the consultants strongly believe hold the key to the success of the reforms that RKD Transport through the management must put in place.
Although RKD Transport has a code of conduct in place, which spells who its stakeholders are as well as obligations the organizations and stakeholders have towards each other, there is evidence of failure in addressing the communication needs of all stakeholders. Stakeholders at the RKD Transport include; customers, employees, shareholders, the community in locations where RKD Transport has or maintains operations, as well as regulatory agencies directly in supervision of transport sector.
RKD Transport has an obligation to effectively communicate to its entire stakeholders upon careful analysis of communication needs of each given stakeholder. (Andrew, 2001). For communication to be effective there is a need for transparency, accountability, as well as upholding and respecting the dignity of all stakeholders. There is a need for the management and indeed the entire staff of RKD Transport to appreciate every stakeholder no matter the stakes each has in the organization.
This is only possible where the organization is careful to ensure that its actions whether passive or active do not have adverse effects on social, financial, environmental, economical impact on stakeholders. So as to ensure that RKD Transport meets its obligations to all stakeholders, the organization must comply with industry regulations, which include the relevant legislations in terms of safety, discrimination policies, issues surrounding occupational health, employment and contract related laws, as well as environmental protection.
By complying with the above requirements as well as the various applicable laws such as legal, tax, and regulatory obligations in all jurisdictions where RKD Transport has business interests, the company will have made the right step towards achieving positive relations with all its stakeholders. As evident in the case study, RKD Transport lacks proper corporate social responsibility policies. This puts into question the ability of RKD Transport to implement policies and strategies, which have paramount to the improvement of internal and external processes of any given organization.
RKD Transport should with immediate effect employ strategic thinking so as to come up with measures to counter the threat of competition, the threat of insufficient resources, the threat of negative political environment, the threat of negative economic and social policies, as well as the threat of keeping in step with the demands of the stakeholders and particularly the demands of the customers. In the past the organization has lacked strategic plans in the areas of financial planning, human resource planning, as well as market planning.
This has greatly affected the performance of RKD Transport and has in effect put the organization in an awkward position and ultimately in the current financial position where the organization is registering losses. As a result of failure of the management at RKD Transport to effectively communicate and lead, the threats facing the organization have led to the organization being unable to solve problems it is experiencing. This has resulted into a situation whereby the challenges are impending on the success of the organization.
Without clear and focused leadership an organization cannot be able to maximize the opportunities it has. It also becomes impossible for the organization to create the right environment for all stakeholders in the organization to function in unity. In such situations an organization is incapable of overcoming human resource challenges as well as other challenges hence the reason why the human resources at RKD Transport have not been utilized to their full potential. The organization is not prepared to deal with change both in the short-term and in the long-term.
If it were prepared to deal with this, then RKD Transport would have put in place strategic thinking as a means of responding to business realities as depicted in the performance of RKD Transport. For an organization like RKD Transport, responding to market forces holds the key to success. This is because it is a well-calculated design that can help any given organization to counter challenges by utilizing and maximizing the resources at its disposal. There is also a need for the management of RKD Transport to improve and add value to all levels of organization.
Evidently change is required in all levels of planning including mega, macro and micro levels. (Abhijit, Rob, & Jenn, 2006). This is important in that unless planning efforts are solidified through other managerial functions the organization cannot achieve unity of purpose and therefore it is impossible to achieve business process improvement. The input of every single stakeholder at RKD Transport will play a crucial role in determining the kind of business environment present at RKD Transport.
An empowering business environment will result into efficiency since this is likely to induce increased cooperation and collaboration between staff and management as well as the external stakeholders. An all inclusive business environment is likely to increase and open up opportunity for increased dialogue something, which is totally missing in RKD Transport. Increased cooperation will also contribute to broader participation by all stakeholders in the decision-making process something, which is likely to result into synergy.
Where synergy is attained, an organization such as RKD Transport ends up posting good annual performance reports therefore attracting more willing shareholders. Improved communication through improved leadership will empower employees and make them readily explore their full potential all to the advantage of RKD Transport. As (Armstrong, & John, 1997) notes, employees who feel that their individual needs are being met by an organization are more likely to give their best and are therefore more likely to be innovative in their duties.
Before RKD Transport decides to implement any change in future, employee involvement must be taken into consideration, there is a need for the management of RKD Transport to wake up and recognize the fact that employees are not ‘empty-headed’ but are rather the ‘engine’ of the organization and their potential in contributing to decision-making process must never be underestimated. How well articulated leadership roles and functions in an organization are plays an important role in determining how successful an organization is likely to become. (Fred, 2003).
It is increasingly becoming evident that, only organizations that constantly improve their internal and external processes can survive in the market in the face of globalization. Where there is lack of clarity of purpose, millions of dollars invested in projects translate only to losses. However where leadership is visionary and exemplary, policies are put in place to address issues before they can have a negative impact on organizational performance, in other words, every move the organization makes has to be responsive to the needs of the market.
There is a need for RKD Transport to integrate business processes into social issues by making sure that it has in place strong social agendas for the employees, shareholders, partners as well as the communities in which the organization operates. For success to be realized every single decision RKD Transport makes must be a decision that adds value to the organization. It is evident from the case study that, in the past decisions have been made from the leadership of the organization, which have in the end led to the organization experiencing losses.
Although leaders in the organization do not enjoy security of tenure, it is suspicious how managers who have in the past contributed to the downfall of the organization have been left without proper legal charges being preferred against them. That can never been viewed as a gesture of goodwill but as a constraint that is deeply affecting performance of RKD Transport. The management of RKD Transport must turn around and reform its policies towards managers or any employee who are found guilty of negligence of duty, which costs the organization money.
So as to achieve the above, the organization must come up with strong policies aimed at empowering the organization to deal with errant managers. The fact that RKD Transport is doing quite poorly in terms of performance does not mean that all hope is lost, there are numerous other cases of organizations, which have been in the same position but have turned around and re-invented themselves.
This is also possible at RKD Transport and the first step would be the organization through the management putting in place customer awareness campaigns especially through the adoption of corporate social responsibility policies that can have a great impact in improving how the stakeholders perceive the organization. Today, the reputation of any organization is largely impacted by the nature of corporate social responsibility an organization upholds. (Rigby, & Chris, 2002). This clearly shows that corporate social responsibility is not a constraint but rather an avenue of improving the performance of any given organization.
It is very likely that the future of RKD Transport will largely depend on the quality of corporate social responsibility initiatives the company puts in place. Successful integration of corporate social responsibility into the marketing initiatives of RKD Transport are likely to see RKD Transport benefit from utilizing cost of corporate social responsibility activities to even market the policies of RKD Transport. In effect this will serve to save RKD Transport marketing costs since the organization is in dire need of economizing the few resources at its disposal.
This report strongly recommends that marketing costs be merged with cost of corporate social responsibility activities and if possible merge the two departments so as to avoid duplication of duties. Evidently the strategy of RKD Transport requires to be updated so as to reflect the emerging challenges. With the changing conditions of market and industry it is important for RKD Transport to keep its strategies in line with the changing business environment. As evidenced by a thorough study of RKD Transport case, the strategies currently in use in the organization are outdated and cannot fulfill the needs of today’s global environment.
This report strongly recommends that RKD Transport should carry on, an audit to analyze, which aspects require improvement from time to time. Such audits will serve to specify which strategies are necessary to support the business operations. Audits will also serve to fill the gaps in the functions of management identified in the organization. This report strongly recommends that RKD Transport consider using market intelligence so as to turn around and face challenges currently entangling the organization.
Unless RKD Transport adheres to the recommendations above, there is the danger of the organization becoming irrelevant or redundant because it will no longer serve the very purpose, mission and vision it was set up to fulfill. The company must envision for new markets considering the fact that current markets are either saturated or cannot break even. This may call for the organization to look further into global marketing something, which calls for the organization to align its objectives to meet foreseeable challenges in the new markets. (Trott, 2005).
So as to penetrate global and regional markets successfully, RKD Transport must endeavor to avail the necessary resources because re-invention or business process re-engineering is quite a costly undertaking, which an organization must look within and without for capital to support projects, which accompany such endeavors. A possible solution would be to integrate the resources currently at the disposal of the organization, which calls for good planning and effective business strategies, financial strategies as well as marketing strategies. (Brammer, & Millington, 2003).
RKD Transport will need to fully engage business analytical tools to reposition the organization to deal with opportunities and threats, which in most cases are out of the ability of the management but which nevertheless must be accommodated. (Kapstein, 2004). It is befitting for RKD Transport to put in place strategic planning measures, business planning measures, project planning measures, financial planning measures as well as staffing planning measures because the current situation is as a result of failure of the planning function of management of RKD Transport.
Finally, the organization will need to engage in branding and come up with a strong brand, which will bring out the uniqueness of RKD Transport. Since successful branding goes hand in hand with strong marketing, the management may need to co-opt services of experienced managers to join the current management team to help in the change process. (Kapstein, 2004).
In conclusion, it is evident from the discussion above that, RKD Transport is faced with planning challenges in terms of financial constraint, the realignment of organization’s vision and mission to reflect the change process in the organization as well as the need to motivate its employees. To solve the challenges faced by RKD Transport, the organization requires carrying out a stakeholder analysis, branding, as well as strategic human resource planning so as to ensure that the change process is a collective exercise from all the stakeholders.