Case study assignment Coursework Example | Topics and Well Written Essays - 1000 words

Case study assignment - Coursework Example ‘Open Systems’ Approach and Icy Foods Open system approach is fundamental to the survival based on external stimuli (Kreitner, 2009). Open systems approach came into effect after World War II when management began thinking that organisations are no more a self-contained unit – free from external influences. The company under discussion namely Icy Foods began its operations in 1999 and continued to grow exponentially at least until 2005. The Smiths adopted a very flexible policy approach for organisational management as that suited to them most for meeting market needs. The informal way of working in Icy Foods encouraged workers to learn varied skills passing through different departments as per the needs. Even the company operated night shifts and weekend working when order book forced them to do so. In fact, the Smiths’ approach was quite flexible in people management. It can be gauged from the fact that employees were trained in several areas of company o perations providing them enough liberty to move where they find themselves more suitable. The Smiths were always keen to invite employee view points on operational aspects to bring efficiency in the operations. The fact remains that employees enjoyed considerable freedom in their overall working including their freedom related to leave. Icy Foods paid them above industry average apart from paying bonuses to high performing workers. The Smiths also motivated workers by declaring monthly awards for performers. The management motivated their workforce to deliver their best in many ways and that is reflected in low rates of employee turnover. Thus, Smiths’ were largely following open systems approach responding well to environmental influences; however, things changed when Icy Foods became a subsidiary of one of the large super market chains namely Megastar Plc. Megastar Lacked Open Systems Approach in Managing Human Resources Brown and Grundy (2012) emphasise that human resource (HR) "strategy is very much a part of an open system with many interdependencies" (p 34). Management of the Megastar not only streamlined the operations but also rationalized the product portfolio keeping only four products while discarding remaining. It is true that the company did a commendable job on operational aspects improving efficiency by 35 percent; however, the company fared badly on human resource development aspects. Employee turnover and absenteeism increased significantly. Employees remained grossly unsatisfied with the management because they were not involved in the decision making. They felt that decisions are thrust upon them by managers and headquarter. It is quite clear that in the process to improve operational efficiency of the firm, the management moved away from the ‘open systems’ approach of management. Trained Workers and employees are not only an important but scarce resource for any organisation and ‘open systems’ approach dicta tes that they must be not only preserved or retained but also allowed to develop within the organisation. It is a fact that new management improved the efficiency of the organisation without making it effective to external influences. Environmental Influences Play Critical Role Cole (2005) argues that several environment factors such as economical, social, technological, or political along with competitive forces keep on exerting influence on any organisation. Most of these external environmental factors are not in control of the firm –