Discuss About The Organizational Stakeholders Related To Achieving.
Eleven is a multibillion dollar convenient store empire that has about 620 stores in Australia, making profits of 120 million dollars every year (7eleven.com.au 2018). The founder and owner of the industry, Russ Withers is holds a 1.3 billion dollar empire and owns property worth millions (Forbes.com 2018). However the industry is built on a business model that exploits its employees, especially the most vulnerable sections of the society, like cash strapped students (mostly international students), visa holders and many aspiring Australian citizens. The organization is involved in a widespread wage scandal that is seen in most of the franchisee, where the workers are grossly underpaid, or not paid at all, and employee records being forged and employees being blackmailed (Ferguson 2015a; Alden 2015). When the head office was contacted, informing them about how the workers in their franchisee stores are being exploited and underpaid, they were quite dismissive, and did not show any interest in any evidence that the caller had to prove those claims. When the wage scam became public, the management declared that they will establish an independent panel to enquire these allegations, with unclear details being given about the panel (abc.net.au 2015). This shows how the HRM of the organization failed at various levels, which allowed the scam to continue in the organization. The organization’s HRM failed as an Ethical and Credible Activist, being unable to show understanding and care for the exploited workers, a lack of courage to stand against the malpractice, and unable to influence the management and ownership to change these practices. The HRM also failed as an expert practitioner, being unable to resolve the wage issue or collaborate with independent activists and reporters to get tom the root of the issue, instead of discrediting them. The HRM thus also failed to act as the stakeholder mentor and to act as the ladder for culture and change, since the organization continued their culture of exploitation, showing no intention to change these practices (Ferguson 2017; Ahri.com.au 2018).
Country Fire Authority (CFA) is a fire service centre based in Victoria, Australia, providing fire fighting and emergency services to aural Victoria and some of the outer suburban areas of Melbourne (cfa.vic.gov.au, 2018). Reports were made against CFA on sexual harassment and assault against the female employees and volunteer workers, which was found to be an ‘endemic’ problem in the organization (McKenzie and Baker 2017). Even the reporters were harassed while covering the problem (Taylor 2017). The work culture is said to perpetuate a system of no transparency and unaccountability, which meant that the workers felt they can get away with anything. Reports from Interim Report on Gender Diversity and Inclusion also showed that almost half of the female and male employees in the organization faced bullying, and almost one third were harassed (including sexual harassment). Other reports have also shown evidence of employees engaging in heavy drinking, and bullying and assaulting some female employees or volunteers, while the captain of the department failed to intervene (Bowden 2018; McKenzie and Baker 2017; Edwards 2017). This shows a failure of the management to maintain an environment of safety and wellbeing in the work premises, and fostering a system of bullying, and misuse of authority. The HRM thus failed to act as a Ladder to culture and change, an effective designer of workforce and workplace and as a mentor and coach for stakeholders. An environment that is felt as unsafe for the employees and other individuals working with or for the organization affects the work culture, and also affects the professional code of conduct within the organization. The HRM also was unable to show understanding and care for the affected individuals, and resolve the issues surrounding the harassment of the employees and volunteers, and influence the leadership to maintain a professional code of conduct and ensure accountability at all levels of the hierarchy (Ahri.com.au 2018).
The Banking industry also faced public displeasure, with accounts of how the banks have been systematically exploiting their consumers. The Banks were found to be ‘ripping off’ their customer’s by increasing the rate of interest to both new and existing loans, costing the taxpayers up to 500 million dollars every year. Also, due to the domination of the banking market by the four big financial organization meant that the bank levy of 6.2 billion dollars were planned to be covered through the expenses of the customers, as a result they ended up paying more to the bank for the same services. The investigative commission that was engaged to study the methodical exploitation of the customers pointed out that the four pillars of banking stability was considered an ad hoc policy, which was redundant, and thus overlooked by the management. They considered the loyalty of their customers as the perfect scope for exploitation. The mortgage brokers also were providing inaccurate information despite earning healthy commissions (Ferguson 2017b; Schneiders and Millar 2015). This showed how the HRMJ failed their key stakeholders, the customers, and allowed the management and ownership of the organization to capitalize on the trust of the customer base to increase the profits. This systematic exploitation was also caused an unsustainable growth in the organization, without showing orientation towards the sustenance of the future market. The HRM was also unable to influence the management and ownership against the systematic exploitation, and show courage to stand up against the practice. The HRM was also unable to collaborate with the key agencies to allow these practices to be reported and being stopped, instead of enabling it to continue. This also affected the credibility of the management as well as the organization after the reports of exploitation came to public enquiry, and thus eroded the public trust. It was thus a professional failure of the HRM, as it failed to consider the interests of the most important part of the organization, the customers. Thus it was evident that the HRM was not an expert practitioner, business driven, strategic planning and ethical/ credible activist (Ahri.com.au 2018).
With an understanding on how the HRM failed in the organizations reviewed in the case studies, there are a few recommendations I would like to make to resolve the problems faced by the organization, its employees and the stakeholders.
For a convenient store giant like 7 eleven, which has more than 600 retail franchisees across Australia, it is important to ensure that the HR management pays focus on employee feedbacks. The HRM can also focus on the policies outlined by the national labour laws and worker health and safety policies. At the managerial and leadership levels, the HRM can ensure that the policies are complied with across all the stores, and any non-compliance is promptly reported and addressed. They can act as vital resources of information for the organization, informing the ethical code of practice and ensuring all employees are paid as per the contract and following the national guidelines. Focus should also be made on students visa holders, who are at the highest risks of being exploited, and ensure that their concerns and wellbeing are addressed. The Wage scam showed that most of the employees in the franchisee are either underpaid or not paid at all, and that the company indulges in fraudulent documentation to cover up the malpractice, and also uses blackmailing strategies to prevent employees to report the authorities against this malpractice. This raises a serious concern for the HRM, to ensure that all form of documentation for employees are done correctly, showing the actual pay each employee is entitled to, and are not blackmailed or pressurized in any way. This can be achieved through building the employee relation, which can bridge the gap between the management and its employees, and facilitate the workers to raise concern when needed (Cohen 2017; Jamali et al. 2015).
To solve the problems of harassment and assault on employees and volunteer workers in CFA, I would recommend that the HRM instils a code of conduct, and ensures such codes are adhered to at all levels. It is important that every employee and workers are held accountable for their actions, and any misconduct be promptly be addressed and any miscreants be penalized. It is important to understand that the incidents of harassment and assault reflects upon a lack of safety and positive work environment in the organization, while the inability of the leaders to intervene such acts shows their complacence towards these issues. Acts like bullying, harassment and assault should be monitored vigorously and investigated promptly by the HRM, and also reported on time. I would also ensure any complaints and reports on such incidents are being relayed to the upper management, and preventative measures be recommended to ensure its inclusion in the organizational policies. A culture of accountability, equality, safety, positivity and productivity is vital to ensure that no employee feels unsafe and unsecure in the working environment. The HRM can also ensure transparency in the working environment, educating and training the workers on whom to approach in the incident of bullying, harassment and assault to themselves or others around them (Astrauskaite et al. 2015). Moreover training the employees about the legal obligations each has to maintain a professional code of conduct should be properly emphasized, along with the importance of accountability, and outlining the penalties that can be imposed on any employee found to be breaking them. The HRM can also make it clear, that no one in the organization is exempt from following these code of practice, and everyone have to uphold them at all times (Rodriguez and Stewart 2017; McDonald et al 2015).
For the Australian Banking sector, I would recommend that the HRM should focus on the stakeholders, instead of increasing the profits of the organization. It is vital to understand that the customers and their loyalty are vital for sustained growth of any organization, and the banking sector is not exception to that. Thus, exploiting the loyalty of the customers, to impose hidden expenses and increasing the interest they need to pay for new and also existing loans is a non-sustainable strategy, which can eventually lead to the erosion of trust from the sector (Coleman 2016). Also, making the customers liable to pay for the deficits of the bank, and misleading the customers in financial matters can also have serious implications for the national finance system. The HRM can stop such practice, by representing the best interests of the stakeholders and customers affected by the banking decisions (Methorst 2017). The HRM can act as the voice of the public relation or customer relation, ensuring the customers are not exploited for company’s gain. Moreover, it is also important to ensure that the employees are also not exploited in any manner or pressurized to act in certain ways to maintain the fraudulent status quo. Instead, a sense of corporate responsibility and customer centric ethics should be highlighted and practiced (Clair and Milliman 2017).
The AHRI FRM model of Excellence outlines how organizational capability can be developed through the interaction of various factors working at different levels, to ensure a positive workforce and workplace, benefit for stakeholders, and developing a culture of productivity and excellence. The model provides valuable insights as to the steps that can be taken by the HRM of the discussed organization to avoid the problems that have been plaguing these organizations.
The problem at 7 eleven stems from the complacency of the head office towards their responsibilities, and hiding the inherent business model used by the organization that allows systematic exploitation of its employees. The HRM can act as a critical thinker and enquirer into the reports of employees being underpaid or not paid at all, studying the payrolls and trying to identify any discrepancies. They can also identity solutions on how the discrepancies can be addressed, and raise concerns in the upper management of the malpractice. Such action can also be future oriented, ensuring the long term well being of the employees and of the employee relations, and thus the long term sustainability. The HRM can also help to influence the ownership and upper management to adhere to their legal obligations, representing the welfare of the workers, fighting courageously if needed against the upper management. This is important since reports have suggested that the Head Office was well aware of the malpractice happening in their franchisee. Developing an understanding, empathy and care for the exploited workers can enable the HRM to comprehend the disadvantages they face regularly for being underpaid, as well as bring to halt the process of blackmailing the employees. Moreover, collaborating with independent reporters and government authorities to report any legal non compliance and malpractice can also help to prevent its occurrence. Interacting with the employees, and understanding their concerns, grief’s and stories, can also help the HRM to find resolutions for those problems, and help to maintain a professional environment in the workforce (Ahri.com.au 2018).
The problem in CFA stems from the employees who have shown major disregard to the professional code of conduct. It is important therefore that proper workforce and workplace design be implemented, in order to ensure all workers understand their professional duties and are able to maintain a professional code of conduct. Acts of bullying, harassment and assault puts the well being of the employee in serious jeopardy, and thus is a loss to the organization. It is important to ensure that the HRM can function as an expert practitioner (preventing the unprofessional acts by some employees and holding them responsible for their actions, acts as collaborators between employees who experienced these disadvantages and with governing bodies on professional code of conduct. Also, the HRM can act as an ethical and credible activist, by understanding the problems faced by the employees, act courageously to intervene in such matters and influence other to maintain a culture of safety and professionalism in the organization. As a strategic architect, the HRM can also outline solutions to the given problem, ensure they are maintained at all levels of the organizational hierarchy. Orienting the employees towards the organizational objectives and context can also help to emphasize on the policies that focuses on maintaining the well being of all employees and workers associated with the organization and how an unprofessional environment created by bullying, harassment and assault can jeopardize that and delineate the workforce from the organizational policies and objectives (Ahri.com.au 2018).
The problem at the Banking Sector also is due to an attitude towards the systematic exploitation. However, in this scenario, the exploitation is primarily focused on the customers and not the employees.; while the employees are being paid handsomely through the commissions in sales and from profits, the customers are being exploited in plain sight. The HRM can ensure that the business is conducted in an ethical and responsible manner, and does not depend on exploitation of people to make profits. Through enquiries and critical thinking, the HRM can identify any malpractice and acts of exploitation of customers. Considering that the satisfaction of the customers and their well being ensures the future of the organization, the HRM can ensure sustainable development through incorporating a sense of responsibility towards them. This can also help to foster an ethic practice in the system, and prevent the public trust from being eroded. It is important to consider that many of the customers seek banking help in dire need situations, and as such it is unethical and irresponsible to capitali8se on their predicament to amass more money. Collaborating with authoritative and governing bodies as well as independent reporters can help to ensure that practices of systematic exploitation does not remain unknown top the stakeholders, the public and the government, and that can act as a significant discouragement towards the maintenance of such malpractice (Ahri.com.au 2018).
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