After reviewing the business, it is clearly visible that the organisations management structure is not defined. Although there are advantages to the current structure model e.g. authority and responsibility being distinct; the impact its having on the business is transparent which relates to the lack of communication across the whole business; with the business being bureaucratic, adapting to different business environment would be slow. John Barker could adopt an equitable human resource management policies and procedures as currently John Barker deals with the wages, arranging jobs schedule and creating invoices. A recommendation could be if Mrs. Stubbs (Secretary) …show more content…
For John Barker to get the most effective workforce it would be ideal for him to understand the psychological contract, which isn’t ‘a written document’ but rather ‘a series of mutual expectation and satisfaction of needs’ which would arise in a people-organization relationship, (Laurie J. Mullins, 2010, p15). In comparison, John Barker would need to make every reasonable effort to provide job security in terms of wages as to now the employees are on commission based which is leading to the jobs not being done properly and numerous …show more content…
Mullins, 2010, p14).
An example of this would be when John Barker states that he ‘expects them to get on with it and not stick their noses in to what doesn’t concern them’. The employees should be considered in human terms unlike physical resources. The core of effective management is the delinquent of integrating the individual and the organization. In regards to which this “necessitates understanding both human personality and work organizations”. (Laurie J. Mullins, 2010, p12). To conclude, John Barker doesn’t understand the fundamentals of effective management which has led to him having certain attitude towards his employees.
It has been acknowledged that more problems have been created due to the lack of co-ordination between sub-ordinates, this can be clearly identified when Jobson states the sales people ‘just want to make as many sales as possible’. The optimal way to pay sales people would be through a “formula of straight-line commissions (in which sales people earn commissions at the same rate regardless of how much they sell)” however for a company such as ‘Hole in the wall’ it would be ideal for the sales people pay to be on fixed salary as the firm’s sales cycle is more uncertain, (Chung, 2015 p57) *an article in Harvard business