Models of Change Tasks at Tata Motors

Models of Change Tasks at Tata Motors Tata Motors Limited is Indias largest automobile company, with consolidated revenues of US$20.5 billion in 2009-10. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the worlds fourth largest truck manufacturer, and the worlds second largest bus manufacturer. The companys 25,000 employees are guided by the vision to be Best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics. Established in 1945, Tata Motors presence indeed cuts across the length and breadth of India. Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles to produce both Fiat and Tata cars and Fiat powertrains. The companys dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. Tata Motors, the first company from Indias engineering sector to be listed in the NewYork Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Koreas second largest truck maker. Task 1: a) Kurt Lewins change management model The concept of change management is a familiar one in most businesses today. But, how businesses manage change (and how successful they are at it) varies enormously depending on the nature of the business, the change and the people involved. And a key part of this depends on how far people within it understand the change process. One of the cornerstone models for understanding organizational change was developed by Kurt Lewin, a physicist as well as social scientist, Back in the 1950s, and still holds true today. His model is known as Unfreeze Change Refreeze, refers to the three-stage process of change he describes. Unfreeze This first stage of change involves preparing the organization to accept that change is necessary, which involves break down the existing status quo before you can build up new way of operating. To prepare the organization successfully, you need to start at its core you need to challenge the beliefs, values, attitudes, and behaviours that currently define it. Using the analogy of a building, you must examine and be prepared to change the existing foundations as they might not support add-on storeys; unless this is done, the whole building may risk collapse. This first part of the change process is usually the most difficult and stressful. When you start cutting down the way things are done, you put everyone and everything off balance. You may evoke strong reactions in people, and thats exactly what needs to done. By forcing the organization to re-examine its core, you effectively create a (controlled) crisis, which in turn can build a strong motivation to seek out a new equilibrium. Without this motivation, you wont get the buy-in and participation necessary to effect any meaningful change. Change After the uncertainty created in the unfreeze stage, the change stage is where people begin to resolve their uncertainty and look for new ways to do things. People start to believe and act in ways that support the new direction. The transition from unfreeze to change does not happen overnight: People take time to embrace the new direction and participate proactively in the change. A related change model, the Change Curve, focuses on the specific issue of personal transitions in a changing environment and is useful for understanding this specific aspect in more detail. In order to accept the change and contribute to making the change successful, people need to understand how the changes will benefit them. Not everyone will fall in line just because the change is necessary and will benefit the company. This is a common assumption and pitfall that should be avoided. Time and communication are the two keys to success for the changes to occur. People need time to understand the changes and they also need to feel highly connected to the organization throughout the transition period. When you are managing change, this can require a great deal of time and effort and hands-on management is usually the best approach. Unfortunately, some people will genuinely be harmed by change, particularly those who benefit strongly from the status quo. Others may take a long time to recognize the benefits that change brings. You need to foresee and manage these situations. Refreeze When the changes are taking shape and people have embraced the new ways of working, the organization is ready to refreeze. The outward signs of the refreeze are a stable organization chart, consistent job descriptions, and so on. The refreeze stage also needs to help people and the organization internalize or institutionalize the changes. This means making sure that the changes are used all the time; and that they are incorporated into everyday business. With a new sense of stability, employees feel confident and comfortable with the new ways of working. The rationale for creating a new sense of stability in our every changing world is often questioned. Even though change is a constant in many organizations, this refreezing stage is still important. Without it, employees get caught in a transition trap where they arent sure how things should be done, so nothing ever gets done to full capacity. In the absence of a new frozen state, it is very difficult to tackle the next change initiative effectively. How do you go about convincing people that something needs changing if you havent allowed the most recent changes to sink in? Change will be perceived as change for changes sake, and the motivation required to implement new changes simply wont be there. As part of the Refreezing process, make sure that you celebrate the success of the change this helps people to find closure, thanks them for enduring a painful time, and helps them believe that future change will be successful. McKinsey 7S framework The McKinsey 7S model involves seven interdependent factors which are categorized as either hard or soft elements: Hard Elements Soft Elements Strategy Structure Systems Shared Values Skills Style Staff Hard elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems. Soft elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful. The way the model is presented in Figure 1 below depicts the interdependency of the elements and indicates how a change in one affects all the others. http://www.mindtools.com/media/Diagrams/mckinsey.jpg Lets look at each of the elements specifically: Strategy: the plan devised to maintain and build competitive advantage over the competition. Structure: the way the organization is structured and who reports to whom. Systems: the daily activities and procedures that staff members engage in to get the job done. Shared Values: called superordinate goals when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic. Style: the style of leadership adopted. Staff: the employees and their general capabilities. Skills: the actual skills and competencies of the employees working for the company. Placing Shared Values in the middle of the model emphasizes that these values are central to the development of all the other critical elements. The companys structure, strategy, systems, style, staff and skills all stem from why the organization was originally created, and what it stands for. The original vision of the company was formed from the values of the creators. As the values change, so do all the other elements. The model is based on the theory that, for an organization to perform well, these seven elements need to be aligned and mutually reinforcing. So, the model can be used to help identify what needs to be realigned to improve performance, or to maintain alignment (and performance) during other types of change. Whatever the type of change restructuring, new processes, organizational merger, new systems, change of leadership, and so on the model can be used to understand how the organizational elements are interrelated, and so ensure that the wider impact of changes made in one area is taken into consideration. You can use the 7S model to help analyze the current situation (Point A), a proposed future situation (Point B) and to identify gaps and inconsistencies between them. Its then a question of adjusting and tuning the elements of the 7S model to ensure that your organization works effectively and well once you reach the desired endpoint. John P Kotters eight steps to successful change American John P Kotter (b 1947) is a Harvard Business School professor and leading thinker and author on organizational change management. Kotters highly regarded books Leading Change (1995) and the follow-up The Heart Of Change (2002) describe a helpful model for understanding and managing change. Each stage acknowledges a key principle identified by Kotter relating to peoples response and approach to change, in which people see, feel and then change. Kotters eight step change model can be summarised as: Increase urgency inspire people to move, make objectives real and relevant. Build the guiding team get the right people in place with the right emotional commitment, and the right mix of skills and levels. Get the vision right get the team to establish a simple vision and strategy, focus on emotional and creative aspects necessary to drive service and efficiency. Communicate for buy-in Involve as many people as possible, communicate the essentials, simply, and to appeal and respond to peoples needs. De-clutter communications make technology work for you rather than against. Empower action Remove obstacles, enable constructive feedback and lots of support from leaders reward and recognise progress and achievements. Create short-term wins Set aims that are easy to achieve in bite-size chunks. Manageable numbers of initiatives. Finish current stages before starting new ones. Dont let up Foster and encourage determination and persistence ongoing change encourage ongoing progress reporting highlight achieved and future milestones. Make change stick Reinforce the value of successful change via recruitment, promotion, new change leaders. Weave change into culture. Task 1: b) Change should not be done for the sake of change its a strategy to accomplish someoverall goal. Usually organizational change is provoked by some major outside driving force, e.g., substantial cuts in funding, address major new markets/clients, need for dramatic increases in productivity/services, etc. Typically, organizations must undertake organization-wide change to evolve to a different level in their life cycle, e.g., going from a highly reactive, entrepreneurial organization to more stable and planned development. Transition to a new chief executive can provoke organization-wide change when his or her new and unique personality pervades the entire organization. Tata Motors was predominantly a manufacturer of commercial vehicles, and that is a very cyclical business. The commercial-vehicle market in India shrank by more than 40 percent, with massive consequences for both the top and, more particularly, the bottom lines of the company. The 110 million US$ loss was the first time something on this scale had happened in the companys history, and it really shook everybody within the organization. They tried to understand what had gone wrong and wanted to create a path for the future to ensure that they never got into such a situation again. So they decided on a recovery strategy that had three distinct phases, each of which was intended to last for around one and half years and 5 years in all. Phase one was intended to stem the bleeding. Costs had to be reduced in a big way, and that was going to be a huge challenge for a company that was not only the market leader but had been used to operating in a sellers market and employing a cost-plus approach to pricing. Phase two was to be about consolidating their position in India, and phase three was to involve going outside India and expanding operations internationally. Task 1: c) To be an effective leader of an organization requires you to do five things: Understand and interpret the environment in which he operate Develop winning strategies Execute them brilliantly; Measure the impact of your strategies followers. If you get results, people will support you, systematically, adjusting strategies as often without caring too much about how you got indicated. Develop organizational, departmental; the world wont retain the support of your followers team and personal capabilities. Team building is an application of various techniques of Sensitivity training to the actual work groups in various departments. These work groups consist of peers and a supervisor. Task 2: a) In recent times Tata Motors have faced a lot of challenge especially from the growing competition and globalization. To fight back these external evils, Tata Motors came out with plans of expansion to fight back competition via mergers and acquisitions and to fight back globalization it decided to cut costs and thereby introduced the worlds cheapest car. But all these activities had severe implications on its internal organizational change. Change was seen both on the management and at the employee level. At the management level change was seen for cutting costs and providing the cheapest car to the world market and at the employee level change was seen because of the much needed Tata Motors to merge with Daewoo, which caused a lot of change in its employees. Task 2: b) Enterprise-wide change is undertaken as a matter of survival. It is not an option and it is not a whim. Change carries high costs in terms of human and physical resources, share prices, stakeholder insecurity, customer dissatisfaction, receivables and cash flow. The reality is often a painful period of change, during which resistance is high, morale is low, productivity is falling, and confusion is rampant. (Calvello Seamon, 1995) No organization undertakes this lightly. So, the question is, if the cause is just, the need is clear, the alternatives evaluated, and the path to success communicated so that anyone in the organization can see that the change is not optional but essential, why does the change fail? The answer, Just being right isnt enough: you have to win the hearts and minds of the people who will make the change happen. (Marsh, 2001) There is no disembodied organization that can be changed. Only the people within an organization can make planned change a reality by changing their behaviours and the ways they relate to one another. Implementing change in an organization forces people to alter how they relate to one another. Not only do their goals, processes, equipment, and reality change but the very way they deal with others in the organization changes. This causes anxiety and anxiety causes resistance. only people who instigate change enjoy it; other have to suffer it. (Marsh, 2001) Faced with forced change many employees feel threatened believing that they will lose power, prestige, competence, and security. They feel that what is happening is beyond their control, outside their sphere of influence, and they fear it. Depending on how the particular organization has managed past change, the fears may be well grounded in experience. Task 3: a) The changes that have happen within organizations around the world over the last five years, have revolutionized how organizations will continue to operate for the next five years.    Businesses have realized that people are more important, whether that be the customer or the employees.    Employees must be happy, self assured, educated, trained, motivated, and leaders in order to be able to create the type of business that produces quality product.    The customer must be happy, and if the employees are not happy, they have a hard time making the customers happy.    Task 3: b) Stakeholder Analysis is the process that: Is intended for group stakeholders and Understands what stakeholders expect from the project and what they need in relation to potential risks Identifies actions to minimize project risks and maximize benefits by working with the stakeholders. This covers organisational stakeholder analysis but you might ask What do I do about directly involving people? There are two basic approaches to this which can be summed up as Representation v Delegation. Both have advantages and drawbacks. Representation: Attempts to take in the full range of views, interest groups and organisational units as part of the full decision making process. Characterised by democratic, committee-type decision-making. Advantages Disadvantages Covers full range of views An obvious route to gain widespread acceptance of decisions Involves people who may have limited knowledge of the subject area Slows decision-making Can result in compromises which dont really represent best fit in any particular area Delegation: Delegates responsibility to those identified as being best suited to the job. Advantages Disadvantages Work carried out by those with appropriate skills and knowledge Permits project to move forward more rapidly Acceptance relies on trust in those delegated may be an alien approach in the education culture Needs care to ensure that all relevant issues are properly understood and covered Task 3: c) A change management strategy identify, prioritise, engage and assess stakeholders. Explicit areas of spotlight include: Ensure that all key stakeholders have an adequate understanding of the objectives, timeline and process. Ensure that stakeholders who will be significantly impacted by the initiative or the change resulting from it have a clear understanding of how and when they will be affected. Influence stakeholder attitudes to become more positive (or at least less negative) towards the initiative and/or the change that it will bring about. Establish an effective feedback loop between the stakeholder group and the project team. Task 3: d) The three greatest barriers to organizational change are most often the following. Inadequate Culture-shift Planning. Most companies are good at planning changes in reporting structure, work area placement, job responsibilities, and administrative structure. Organizational charts are commonly revised again and again. Timelines are established, benchmarks are set, transition teams are appointed, etc. Failure to foresee and plan for resultant cultural change, however, is also common. When the planning team is too narrowly defined or too focused on objective analysis and critical thinking, it becomes too easy to lose sight of the fact that the planned change will affect people. Even at work, people make many decisions on the basis of feelings and intuition. When the feelings of employees are overlooked, the result is often deep resentment because some unrecognized taboo or tradition has not been duly respected. Lack of Employee Involvement. People have an inherent fear of change. In most strategic organizational change, at least some employees will be asked to assume different responsibilities or focus on different aspects of their knowledge or skill. The greater the change a person is asked to make, the more pervasive that persons fear will be. There will be fear of change. More important, however, there will be fear of failure in the new role. Involving employees as soon as possible in the change effort, letting them create as much of the change as is possible and practical is key to a successful change effort. As employees understand the reasons for the change and have an opportunity to try the change on for size they more readily accept and support the change. Flawed Communication Strategies. Ideal communication strategies in situations of significant organizational change must attend to the message, the method of delivery, the timing, and the importance of information shared with various parts of the organization. Many leaders believe that if they tell people what they (the leaders) feel they need to know about the change, then everyone will be on board and ready to move forward. In reality, people need to understand why the change is being made, but more importantly, how the change is likely to affect them. A big picture announcement from the CEO does little to help people understand and accept change. People want to hear about change from their direct supervisor. A strategy of engaging direct supervision and allowing them to manage the communication process is the key to a successful change communication plan. Task 4: a) RELEVANCE OF THE MODELS OF CHANGE Kurt Lewin theorized that there are three stages to change: Unfreezing: Old ideals and processes must be tossed aside so that new ones may be learned. often, getting rid of the old processes is just as difficult as learning new ones due to the power of habits. Just as a teacher erases the old lessons off the chalkboard before beginning a new lesson, so must a leader help to clear out the old practices before beginning the new. During this part of the process you need to provide just a little bit of coaching as they are unlearning not learning and a lot of cheerleading (emotional support) to break the old habits. Changing: The steps to the new ideals are learned by practicing: W h a t I h e a r , I f o r g e t . W h a t I s e e , I r e m e m b e r . W h a t I d o , I u n d e r s t a n d . Although there will be confusion, overload and despair, there will also be hope, discovery, and excitement. This period requires a lot of coaching as they are learning and just a little bit of cheerleading due to the affect of Arousal Overloading. Refreezing: The new processes are now intellectually and emotionally accepted. What has been learned is now actually being practiced on the job. Just a little bit of coaching is required and a lot of cheerleading is used to set up the next change process. . . remember it is c o n t i n u o u s process improvement! Task 4: b) 1. Formulation of a clear strategic vision: In order to make a cultural change effective a clear vision of the firms new strategy, shared values and behaviours is needed. This vision provides the intention and direction for the culture change. 2. Display Top-management commitment: It is very important to keep in mind that culture change must be managed from the top of the organization, as willingness to change of the senior management is an important indicator (Cummings Worley, 2005, page 490). The top of the organization should be very much in favour of the change in order to actually implement the change in the rest of the organization. De Caluwà © Vermaak (2004, p 9) provide a framework with five different ways of thinking about change. 3. Model culture change at the highest level: In order to show that the management team is in favour of the change, the change has to be notable at first at this level. The behaviour of the management needs to symbolize the kinds of values and behaviours that should be realized in the rest of the company. It is important that the management shows the strengths of the current culture as well, it must be made clear that the current organizational does not need radical changes, but just a few adjustments. 4. Modify the organization to support organizational change: The fourth step is to modify the organization to support organizational change. 5. Select and socialize newcomers and terminate deviants: A way to implement a culture is to connect it to organizational membership, people can be selected and terminate in terms of their fit with the new culture. 6. Develop ethical and legal sensitivity: Changes in culture can lead to tensions between organizational and individual interests, which can result in ethical and legal problems for practitioners. This is particularly relevant for changes in employee integrity, control, equitable treatment and job security. Change of culture in the organizations is very important and inevitable. Culture innovations is bound to be because it entails introducing something new and substantially different from what prevails in existing cultures. Cultural innovation is bound to be more difficult than cultural maintenance. People often resist changes hence it is the duty of the management to convince people that likely gain will outweigh the losses. Besides institutionalization, deification is another process that tends to occur in strongly developed organizational cultures. The organization itself may come to be regarded as precious in itself, as a source of pride, and in some sense unique. Organizational members begin to feel a strong bond with it that transcends material returns given by the organization, and they begin to identify with in. The organization turns into a sort of clan. Marsh, Christine. (2001, March). Degrees of Change Resistance or Resilience. Performance Improvement, v40 n3 pp 29-33.

Wilkie Collins’ The Woman In White: 19th Century Victorian femininity e

Wilkie Collins’ The Woman In White: 19th Century Victorian femininity exposed through the accounts of multiple narrators Readers of nineteenth century British literature imagine typical Victorian women to be flighty, emotionally charged, and fully dependent on the men in their lives. One envisions a corseted woman who is a dutiful wife, pleasant entertainer, and always the model of etiquette. Wilkie Collins acknowledges this stereotype in his novel The Woman in White, but he contradicts this image by creating strong women in the characters of Marian Halcombe, and to a lesser extent, of Laura Fairlie. Collins also explores these powerful women in relation to marriage, and their loss of identity in becoming a wife, as exemplified by Madame Fosco. He reveals personal details about the women by employing a journal-style novel, one in which most characters have the ability to describe the action in their own words and thoughts. In this way, Collins can craft a mystery where both sexes are in a constant power struggle and the women are as well-equipped to be detectives as the men. The character of Laura Fairlie is an interesting one to explore; on one hand, she appears to be the embodiment of Victorian sentiment. Laura is emotional and considered very feminine by all narrators in the novel, and initially seems to be controlled by men because of the promise she makes to her father on his death-bed. Her consent to this loveless marriage with Sir Percival Glyde also proves her to be stronger than an average Victorian woman might be; she is a moral, respectable woman, whose conscience will not let her betray the promise to her father for an alternative escape. The reader first meets Laura through Walter Hartright’s eyes, and... ...ntellect with regard to detection and solving a mystery. In The Woman In White, Wilkie Collins employs a changing narrator that gives voice to powerful women and their struggle against the oppressions of marriage. With the characterizations of Marian Halcombe and Laura Fairlie, he dismisses the outmoded notions of Victorian womanhood, and places equal power between the men and women in his novel. Madame Fosco is representative of the passive Victorian woman, and her extreme change in character forces the reader to examine the negative aspects of marriage for these women more closely. With the distinct accounts of different authors, the reader is able to gain insights into these women and their motives for accepting or denying their gender roles in the novel. Works Cited Collins, Wilkie. The Woman In White. Oxford University Press, Inc: New York. 1996.

For profit and non profit organization Essay

Both not for profit and for profit companies have many similarity and differences. A lot of companies start with the intent of making a profit. These companies also pay taxes and are called profit or for profit companies (Rodwell, & Teo, 2013). Other companies, while they can make a profit begin with the intent of helping others. These companies are not for profit or non-profit organizations. Nonprofit organizations are not allowed to make a profit, and do not pay taxes, but they might generate income. Any income generated by a nonprofit must be returned to the organization to accomplish the goals for which it was established (Anand, 2008). Regardless of its status, many companies like Goodwill Industries International and BP P.L.C. are faced with challenges that threaten the company ethically and morally. Part One: Goodwill Industries International (Not-for-Profit) Profile of Goodwill Industries: Goodwill Industries International is a nonprofit 501(c)(3) organization. Donations and gifts are fully tax-deductible to the degree acceptable by law. Goodwill Industries International is a worldwide social services initiative that creates opportunities for people to attain financial constancy and build durable families and lively communities by offering job training, employment assignment services and other community-based programs for people who have incapacities, those who do not have the education or job experience, and others who face difficulties finding employment (Goodwill Industries International, 2014). Goodwill supports the operations of about 165 individual Goodwill chapters in the US and Canada. Founded in 1902, Goodwill is one of the world’s leading benefactors of such services, as well as one of the largest employers in the world of the disabled (Hoovers, 2014). Areas of Interest: While it is most recognized for its 2,800 thrift stores, Goodwill concentrates on offering rehabilitation, job preparation, placement, and employment servi ces for people with disabilities and others. The company helps people to find and keep good jobs (Hoovers, 2014). Goodwill offers programs for young people, senior citizens, veterans, and people with disabilities, criminal backgrounds and other specialized needs (Goodwill Industries International, 2014). Mission statement: Goodwill works to improve the self-worth and value of life of individuals and families by reinforcing communities, removing obstacles to opportunity, and helping people in need achieve their full potential through learning and the power  of work. Goodwill strives to enhance the dignity and quality of life of individuals and families by helping people reach their full potential through education, skills training and the power of work (Goodwill Industries International, 2014). Summary of activities: (Based on 2013 Data) Last year, Goodwill assisted more than 9.8 million people prepare for careers in industries such as banking, IT and health care, and to get the backup services they needed to be successful (Hoovers, 2014). Last year the company served 9.8 million through employment and training programs, 44 million through mission services, 261, 875 received a job with Goodwill’s assistance and its estimated that those people earned $4.4 billion (Goodwill Industries International, 2014). Funding Sources: Support for Goodwill programs is produced mainly from the sale of contribution of goods, both at the retail stores and through an online auction site, and from contract work and government grants (Goodwill Industries International, 2014). The total profits produced by Goodwill organizations was $5.17 billion of which 83% was spent on programs. There are 87 million donors. Retail stores generated $3.79 billion, industrial and service contract work produced $647 million, $90 million came from government grants and $27 million from corporate and foundation grants. Individual gifts, donations and fees for services generated $46 million and government support foe mission services produced $455 millio n (Goodwill Industries International, 2014). History: Goodwill was founded in 1902 in Boston by Rev. Edgar J. Helms, a Methodist minister and early social visionary. Helms gathered old domestic goods and clothing in more affluent areas of the city, then taught and hired those who were underprivileged to fix and restore the goods (Goodwill Industries International, 2014). Goodwill Structure: Goodwill International’s CEO is Jim Gibbons. Cindy Cho Kim is the Director of International Development and currently there are two spokespeople Organization expert Lorie Marrero is the face of the Donate Movement. ABC reporter Evette Rios united with Goodwill’s cause in 2012 to help to plead to the Latin American market. Goodwill stores are self-governing organizations headed by a charitable board of directors (Goodwill Industries International, 2014). Goodwill has a connection of 165 independent, community-based Goodwill stores in the United States and Canada. Each local Goodwill must be accredited, request participation and meet specific standards created by Goodwill Industries  International (GII) (Goodwill Industries International, 2014). The GII Member Services center, is located in Rockville, MD. There are 2,900 total retail stores. Goodwill Industries of the Columbia, Inc. was initially recognized as a branch division of the Seattle Goodwill in 1961. Goodwill also has an online auction site at www.shopgoodwill.com (Goodwill Industries International, 2014). Values statement: The goods were then resold or were given to the people who fixed them. The system worked, and the Goodwill value of â€Å"a hand up, not a hand out† was established. (Goodwill Industries International, 2014). The value statement includes respect, integrity, stewardship, innovation and excellence (Goodwill Industries International, 2014). Problems: One problem that Goodwill Industries has is their view in the public eye. Many Goodwill stores are viewed as exploiters of disabled citizens. Some stores used a federal law under the Special Wage Certificate Program, to employ disabled workers at rates of 22, 38, and 41 cents per hour (Gibson, 2 013). The law allows nonprofits and companies to get a certificate that lets them to employ disabled workers â€Å"based on their abilities† at whatever salary they find suitable, with no minimum. This is compared to the $729,000 in salary and deferred compensation that the CEO, Jim Gibbson makes. The CEOs of Goodwill organizations across the U.S. mutually earned $30 million (Gibson, 2013). The problem exists because there are numerous disabled adults who still need to support themselves but cannot get hired by normal means. Management and upper administrators have the ability to ensure that all their employees work in a safe and equal working environment which proper accommodations for their disabilities. Goodwill’s response was that disabled workers would not be hired anywhere else and should be appreciative for any amount they make even if it is 22 cents. Goodwill is against eliminating the program because it would cause more harm than good (Gibson, 2013). Support for Goodwill programs is produced mainly from the sale of contribution of goods, both at the retail stores and through an online auction site, and from contract work and government grants (Goodwill Industries International, 2014). Another problem that Goodwill faces is criticisms for ripping off customers. The prices of items are for a donated used article. Goodwill has been accused of taking the better donated items and selling the products on eBay or keeping them for themselves, or calling family members to come in and purchase the items. They also sell the less desirable items in stores and price them at ridiculously expensive prices for used and donated items. According to Smith, selfishness is a fundamental driving force of human conduct (Fieser & Moseley, 2012). Companies such as Goodwill accumulate wealth through a system that presents good intentions but are driven by greed. The company has become very wealthy off of items that were completely free. Company Impact: One report indicates a decrease in donations (Begam, 2010). Donations for several local charities are at an all-time low this year. Goodwill says their donations are down 25% in their stores across the region (Begam, 2010). Many consumers are urged not to donate to Goodwill because of their treatment of disabled employees and pricing donated goods at high prices. Part Two: BP P.L.C (For-Profit) Although BP P.L.C. is a profit organization, it faces many challenges that also threaten the company ethically and morally. Profile of BP, P.L.C.: BP is one of the world’s leading international oil and gas companies. We provide customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving, and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging (BP, 2014). Areas of Interest: BP’s area of interests includes finding and extracting oil and gas to producing fuels, lubricants and petrochemicals (BP, 2014). Mission Statement: Although not specifically labeled a â€Å"mission statement,† BP has a published statement of â€Å"What We Stand For†: â€Å"BP wants to be recognized as a great company – competitively successful and a force for progress. We have a fundamental belief that we can make a difference in the world. We help the world meet its growing need for heat, li ght and mobility. We strive to do that by producing energy that is affordable, secure and doesn’t damage the environment (BP, 2014). Summary of Activities: In 2013 BP completed 17 exploration wells and made seven potentially commercial discoveries in 2013. It was the most successful year for exploration drilling in almost a decade. They started three major projects in 2013 and another three in January and February 2014. They completed the commissioning of all major units for the Whiting refinery upgrade, transforming it into one of our advantaged downstream assets in our portfolio (BP, 2014). Funding  Sources: In 2013 BP had several areas of funding. Sales and other operating revenues totaled 379,136 million dollars. Earnings from joint ventures – after interest and tax totaled 447 million dollars. Earnings from associates – after interest and tax totaled 2,742 million dollars. Interest and other income totaled 777 million dollars. Gains on sale of businesses and fixed assets totaled 13,115 million dollars. Total revenues and other income totaled 396,217 million dollars and BP shareholders totaled 23,451 million dollars (BP, 2014). BP’s History: BP’s history begin with innovations, starting in 1908 with oil found in a rugged part of Persia after a long and difficult search. Since then, discoveries large and small have fuelled the company’s progress. Back in England, William D’Arcy gambled his considerable fortune on oil, and was on the verge of losing everything. It seemed that the geologists and experts who had wagged their heads encouragingly at him since 1901 had all been wrong about the oil beneath the sands of Persia. By the early morning of 26 May 1908, the whole camp reeked of sulphur. At four o’clock the drill reached 1,180 feet and a fountain of oil spewed out into the dawn sky. Within a year, the Anglo-Persian Oil Company, which would one day become BP, was in business (BP, 2014). BP’s Values: Our values of safety, respect, excellence, courage and one team align explicitly with BP’s code of conduct and translate into the responsible actions necessary for the work we do every day. Our values represent the qualities and actions we wish to see in BP, they guide the way we do business and the decisions we make (BP, 2014). Structure: BP’s businesses are organized to deliver the energy products and services people around the world need right now. It has 102,498 locations and its international headquarters in located in St James’s Square, London Its Upstream segment is responsible for activities in oil and natural gas exploration, field development and production. Its Downstream segment focuses on fuels, lubricants and petrochemicals. BP is one of the world’s leading international oil and gas companies. They provide customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving, and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging (BP, 2014). Problems: One problem that BP faces results from the oil spill in the Gulf of Mexico in 2010. The company faces many lawsuits. BP is front and center because of  its high-profile role in the disaster, not to mention its deep pockets and its reputation as a global business power. Current estimates have BP setting aside about $32 billion to cover cleanup, legal claims, fines, and other costs related to the spill. So, clearly BP is planning on taking the brunt of the legal blame — and the biggest financial hit, for contributing to the worst oil spill in the nation’s history (Nolo, 2014). Another problem the company faces is the mandated cleanup fines that the government is requiring the company to pay. According to Smith, selfishness is a fundamental driving force of human conduct (Fieser & Moseley, 2012). Companies such as BP accumulate wealth by using resources from the Earth. The company is subject to lawsuits and cleanup fines because of the numerous livelihoods that were damaged and the damage cause to the environment as a result of the oil spill the government requires the company to supply. Recently, BP Oil and Gas filed a petition with US Supreme Court Justice Antonin Scalia seeking review of a lower court’s decision to have BP continue making payments to the affected parties related to the 2010 Gulf of Mexico oil spill and stop payments to claimants while litigation continues (Matthew, 2014). Impact to Company: Initially, BP had a negative public view and maintained its stock. However, by late June, BP was trading in the $27 range. Fewer analysts recommended buying BP and a few recommended that investors sell. Coincidentally, this was all about the same time as or shortly after BP agreed to put $20 billion into an escrow account to pay for spill-related damages and announced it would not pay stock dividends in 2010 (Lawyers.com, 2014). In addition as of 2013, BP spent $26 billion on response efforts. Part Three: Personal Ethical Evaluation Goodwill Industries International Goodwill’s primary response was driven by selfish motives (Fieser & Moseley, 2012) and morally irresponsible. The company’s response that the people should be grateful and not complain about their wages brings a negative view upon the company. According to Fieser and Moseley (2012), the moral subjectivist thinks that right and wrong is decided by what, the subject of the situation, thinks or feels is right or wrong. However the average person  working in the United States expects to receive minimum wage for working, because it is the norm or culturally relative (Fieser & Moseley, 2012). The culture of the United States would view Goodwill as taking advantage of already limited people. Ethical egoism implies that people act so as to maximize their self-interest (Fieser & Moseley, 2012). Goodwill felt that it was doing a greater good by hiring those who would not normally have gotten employment. Morally speaking, they were within the confines of the law to operate as su ch. Because Goodwill used the Special Wage Certificate Program, to employ disabled workers at rates cents per hour (Gibson, 2013) they were legally justified in their actions. The law allows nonprofits and companies to get a certificate that lets them to employ disabled workers â€Å"based on their abilities† at whatever salary they find suitable, with no minimum. On the other side of this coin is that Goodwill receives grant money from the government for operating as a nonprofit organization and actually helping people in the community. Even though the attempt was noble, they could have done more to improve the situation. Though they hired a demographic of people that would normally remain unemployable, they could have offered a salary that demonstrates a level of equality, fairness or self-worth. In many cases these people were working for less than eight dollars a day. They spent more money in expenses getting to work than they actually made at work. Some of the people complained about that very issue also, that they did not make enough money to cover rent. This is compared to the $729,000 in salary and deferred compensation that the CEO, Jim Gib bson makes. The CEOs of Goodwill organizations across the U.S. mutually earned $30 million (Gibson, 2013). The company received 90 million dollars government grants and $27 million from corporate and foundation grants in 2013. Goodwill offered a potential solution to a difficult situation. In doing so, the company created a problem for themselves. It could have been prevented had they offered an acceptable wage compensation to the disable employees. One way Goodwill can address the issue with the treatment of its employees is to consider the triple bottom line, which implies that successful companies must pursue three distinct values: people, the planet, and profit (Fieser & Moseley, 2012). There should be social benefit to workers and the community, environmental benefit with the implementation of sustainable ecological practices, and economic benefit only after all hidden  environmental costs have been factored in. In doing so, if Goodwill hires employees, then they should pay them minimum wage and accommodate their job assignments according to their ability regardless of their level of ability. They should also offer opportunity for raises and promotion. This ensures that everyone gets equal pay and fair treatment. One solution for the issue of greed is to put into place quality assurance representatives and to create a price list for different categories of items. This ensures that all items are priced the same across the country. The price list should have a price range, which includes the lowest and highest prices that items can be priced within their category. For example, a lamp can be priced from $3.00 to $5.00 depending on quality. This solution is possible but would require extreme communication across the nation. It would also require store representatives to ensure that these policies were followed and to ensure that all donations are inventoried properly. BP P.L.C BP’s primary response was utilitarian driven (Williams, 1973) and morally responsible (Fieser & Moseley, 2012). The company was motivated by the idea to make things right. The company’s response to set finances aside for the cleanup efforts and to assist those affected by the oil spill was their way of taking responsibility for the harm that their operations and property caused on the environment and lives in the Gulf area. The oil spill was a direct result of the company drilling in the Gulf. The thousands of gallons of oil that flooded the area affected animal life and eventually the livelihood of fishermen. BP plc was faced with managing the crisis and examining the causes of its organizational failure. At the core of the issue is a failed organizational culture. The problem could have been prevented had BP ensured that all safety measures for drilling were being used. As time passed, BP became more driven by ethical egoism. They began to act so as to maximize their self-interest. They no longer wanted to pay the families who were affected and wanted courts to reevaluate the situation to determine if they were still obligated to pay these families for the oil spill that killed and poisoned wildlife, animals and fish (Matthew, 2014). Even though the company’s initial response was admirable, they came back with an actions that demonstrated that they are truly a profit company and wanted to stop all obligation to pay those who were affected by the oil  spill. The company agreed to put $20 billion into an escrow account to pay for spill-related. They eventually paid $26 billion in issued related to the oil spill (Gibson, 2013). BP could have do more to help the situation analyzed the damage caused by the oil spill to determine lasting effects on fishermen’s livelihoods. The company can set aside more money to assist in future cleanup efforts, provide funding to local environmental services for testing and cleanup efforts. BP can also settle all reasonable lawsuits. This will help its public image and provide closure for families who lost their livelihood. The company can set aside money for environmental service agencies to test toxicity levels, population and regeneration of different animal species and any future cleanup efforts. These solutions are possible because eventually BP will have to pay more in legal fees, lawsuits or fines. These solutions offer them the chance to get ahead of the problem and be proactive Part Four: Critique of Company’s Actions Goodwill Industries International Goodwill’s actions and motivation seem to reflect self-interest and at times down right greed. The company’s response that the people should be grateful and not complain about their wages brings a negative view upon the company. According to Fieser and Moseley (2012), the moral subjectivist thinks that right and wrong is decided by what, the subject of the situation, thinks or feels is right or wrong. Even though Goodwill’s administration would have viewed the hiring of disabled people at such a low wage as acceptable, many would not. The average person working in the United States expects to receive minimum wage for working, because it is the norm or culturally relative (Fieser & Moseley, 2012). The culture of the United States would view Goodwill as taking advantage of already limited people. Ethical egoism implies that people act so as to maximize their self-interest (Fieser & Moseley, 2012). Goodwill felt that it was doing a greater good by hiring those who would not normally have gotten employment. Morally speaking, they were within the confines of the law to operate as such. Because Goodwill used the Special Wage Certificate Program, to employ disabled workers at rates cents per hour (Gibson, 2013) they were legally justified in their  actions. The law allows nonprofits and companies to get a certificate that lets them to employ disabled workers â€Å"based on their abilities† at whatever salary they find suitable, with no minimum. The company’s response should have been response was utilitarian driven (Williams, 1973). This approach would have allowed the company to view the disabled as people worthy of the respect of being treated and paid equally. Just because they â€Å"can† legally pay these employees less does not mean that it is the correct thing to do. Right and wrong could have been determined by a cost-benefit analysis. Because the company receives so many millions to help fund programs like employing disable people, they would not have lost anything financially to pay the people at least minimum wage. There could have been several benefits, such as a more positive public view, sustained donations from the public and a developing a program that actually helps the community. BP P.L.C. BP’s primary response was utilitarian driven (Williams, 1973) and morally responsible (Fieser & Moseley, 2012). The company was motivated by the idea to make things right. The company’s response to set finances aside for the cleanup efforts and to assist those affected by the oil spill was their way of taking responsibility for the harm that their operations and property caused on the environment and lives in the Gulf area. As time passed, BP became more driven by ethical egoism. They began to act so as to maximize their self-interest. They no longer wanted to pay the families who were affected and wanted courts to reevaluate the situation to determine if they were still obligated to pay these families for the oil spill that killed and poisoned wildlife, animals and fish (Matthew, 2014). (1) Moral Subjectivism In its common form, Moral Subjectivism amounts to the denial of moral principles of any significant kind, and the possibility of moral criticism and argumentation. In essence, ‘right’ and ‘wrong’ lose their meaning because so long as someone thinks or feels that some action is ‘right’, there are no grounds for criticism.à  If you are a moral subjectivist, you cannot object to anyone’s behaviour (assuming people are in fact acting in accordance with what they think or feel is right).à  This shows the key flaw  in moral subjectivism — probably nearly everyone thinks that it is legitimate to object, on moral grounds, to at least some peoples’ actions.à  That is, it is possible to disagree about moral issues. (2) Cultural Relativism Right and wrong is determined by the particular set of principles or rules the relevant culture just happens to hold at the time. Cultural Relativism is closely linked to Moral Subjectivism.à  It implies that we cannot criticize the actions of those in cultures other than our own.à  And again, it amounts to the denial of universal moral principles.à  Also, it implies that a culture cannot be mistaken about what is right and wrong (which seems not to be true), and so it denies the possibility of moral advancement (which also seems not to be true). (3) Ethical Egoism Right and wrong is determined by what is in your self-interest.à  Or, it is immoral to act contrary to your self-interest. Ethical Egoism is usually based upon Psychological Egoism — that we, by nature, act selfishly.à  Ethical egoism does not imply hedonism or that we ought to aim for at least some ‘higher’ goods (e.g., wisdom, political success), but rather that we will (ideally) act so as to maximize our self interest.à  This may require that we forgo some immediate pleasures for the sake of achieving some long term goals.à  Also, ethical egoism does not exclude helping others.à  However, egoists will help others only if this will further their own interests. An ethical egoist will claim that the altruist helps others only because they want to (perhaps because they derive pleasure out of helping others) or because they think there will be some personal advantage in doing so.à  That is, they deny the possibility of genuine altruism (because they think we are all by nature selfish).à  This leads us to the key implausibility of Ethical Egoism — that the person who helps others at the expense of their self-interest is actually acting immorally.à  Many think that the ethical egoist has misunderstood the concept of morality — i.e., morality is the system of practical reasoning through which we are guided to constrain our  self-interest, not further it.à  Also, thatà  genuine altruism is indeed possible, and relatively commonly exhibited. Utilitarianism Utilitarianism is a very simple view that matches common sense – right and wrong can be determined by a cost-benefit analysis. We must consider all the good and bad consequences when deciding if an action is right. Utilitarians disagree about what counts as â€Å"good† or â€Å"bad.† Some think that fulfilling desires is good and thwarting desires is bad, classic utilitarians think that happiness is good and suffering is bad, and pluralists believe that there are multiple â€Å"intrinsic goods† that are worth promoting. An action will then be said to be â€Å"right† as long as it satisfactorily causes good consequences compared to alternative actions, and it will be â€Å"wrong† if it doesn’t. Utilitarianism doesn’t discriminate or encourage egoism. It is wrong to harm others to benefit yourself because everyone counts. What counts as â€Å"satisfactory† will not be agreed upon by all philosophers. Originally some philosophers suggested that only the â€Å"best† action we could possibly perform is â€Å"right,† but this is an extreme, impractical, and oppressive view. Why? Whenever you are taking a shower or spending time with friends it would probably be better to be doing something else, such as helping the needy, but it is absurd to say that you are always doing wrong whenever you are taking a shower or spending time with friends. Additionally, it isn’t clear that there is a â€Å"best† course of action always available to us. There might be an unlimited number of actions we can perform and at least one of them could be better than what we choose to do. Corporate sustainability includes many normal business practices. The oil spill in the Gulf of Mexico provides a classic example of how failure to be sustainable can lead to an overall organizational failure of mandate, and a failure to serve stakeholders. BP plc was faced with managing the crisis and examining the causes of its organizational failure. At the core of the issue is a failed organizational culture. This paper examines what events and  organizational values have led to the crisis and what changes to organizational culture would be required, to avoid a repeat event and begin to create a sustainable organization. Reference: Arnold, D. H., & McKay, R. (2013). Sustainable Enterprises: Crisis Management and Culture Transformation for BP. Business and Management Research, 2(3), p16. Chicago Anand, S. (2008). Not†for†Profit Organizations. Essentials of Corporate Governance, 163-177. Matthew, J. 2014. BP Asks US Supreme Court to Halt Gulf of Mexico Oil Spill Payments Retrieved from http://www.ibtimes.co.uk/bp-asks-us-supreme-court-halt-gulf-mexico-oil-spill-payments-1450360 Rodwell, J. J., & Teo, S. T. (2013). STRATEGIC NRM lN FOR-PROFIT ANO NON-PROFIT ORGANIZATIONS IN A KNOWLEDGE-INTENSIVE INDUSTRY. Human Resource Management in the Public Sector, 9. Williams, B. (1973). A critique of utilitarianism. Cambridge/UK.

European Union Foreign Policy - 1639 Words

Enlargement of the European Union (EU) is a contentious issue for the public and scholars alike due to its novelty, even garnering the phrase sui generis. There are many legitimate reasons for opposing enlargement, including: loss of sovereignty and autonomy, diverting efforts and resources from deepening integration between member states, and the stress being put on the institutions and economies of member states by countries with unfair trade, rampant corruption, and territorial and ethnic disputes. Regardless of the validity of these criticisms, in terms of effectiveness, enlargement proves the most powerful foreign policy tool of the European Union. I will contend this by focusing on the different foreign policy tools available to states and multi-state coalitions like the EU: diplomacy, foreign aid, and military force. 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