The current business setting of many organizations is not changing with time. G4S US has a management structure that drops down from CEO, Directors, Heads of Departments and junior managers. The lowest level employees report to the junior managers. The management structure of the organizations is top-down. Major decisions are made at the top, but every level of the Directorate has decisions that they are responsible for handling.
Like any other organization, the organization faces an urgency problem between different stakeholders. People have interests, but the interests of the other parties contradict with theirs. Therefore, measures ought to be taken address the problem. The structure of the organization is appropriate in running the organization, but improvements can be made for better results.
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Employee compensation is among the issues that G4S US takes into consideration. Largely, the organization has competitive remuneration structure that has kept employees motivated. Also, the remuneration package should be allowed to adjust with time; depending on the current economic situation of the country. Employee remuneration should include three categories of financial reward: basic pay, direct benefits and performance pay (Shields, 2016).
Body
G4S US has a top-down organization structure. At the top, there is the CEO, and the lowest employees report to junior managers. Between the first organ and the lowest officers, there are directors, heads of departments, and junior managers. The directors are responsible for one or more departments, but each department has a heap. The junior managers report to the head of a department who collect information that is necessary for decision making and relay it to the top. The decisions made by the CEO are different from those of the junior managers. The CEO is responsible for large decisions that affect the future of the organization while the other part decides on sub-department issues. The best organization structure depends on the size and type of firm and the people involved (Beierlein et al., 2014).
The organization faces an agency problem. When employees work hard to make more profits, the firm will benefit, and their remuneration is intact. Therefore, they lack the motivating to wake up every morning and work for better profits. Consequently, there is an urgency problem between the junior employee and the management. The junior employees work extra- hard to better the profits, but the bonuses are paid to the management. Therefore, the agency problem demotivates part of the employees.
The urgency problem exists because no one has looked at the situation in that perspective and it is believed that it does not affect the overall profitability of the organization. However, to fix the problem, the top management should form policies that guarantee the employees that they will get a small chunk of the profits as bonuses. It is an issue to be discussed at the annual general meeting of the organization. If the matter is presented to the meeting with good supporting arguments, they chances that it might be approved are high. All shareholders desire to seek motivated employees because they are the source of their huge dividends.
The current job design of the firm is appropriate for such a firm in the security industry. The decision-making organ should be flexible and easy to point out. Job design lays out job responsibilities and spells put how they are performed (DuBrin, 2012). G4S US is grouped by their products. The different departments have separate products they provide to the clients. The organization is effective because each department has employees that are experts in the specific field. Therefore, even with client queries, they are best placed to provide solutions.
The organization has a competitive compensation package. The lowest employee paid fairly well. However, there exists a huge disparity between what employees are paid and what the executives receive. Also, the executives get better allowances and bonuses at the end of the financial year. The case with other employees is different. To improve the remuneration package, G4S US should give better allowances to their employees and even consider issuing bonuses to some of the employees. The best performing employees should be issued with bonuses.
Results
The organization has been facing growing competition in the market. However, it has still seen profitability. Therefore, it should implement measures that are meant to create efficient working conditions and keep employees motivated. Also, the management should minimize the agency problem that is evident in the organization. When a principal hires an agent, Aa difficulty arises, for he cannot fully monitor the agent's actions (Cornett, 2015).
Employee motivation should be handled carefully. When they are not motivated, the employee turnover in an organization rises, and most of them end up in the competitor’s territory. Therefore, employees should be compensated according to changing economic times. Also, the career development aspect should be streamlined. The best performing employees should be considered for bonuses at the end of the year. The model of choosing the best employees should be transparent. The procedure and guidelines should be laid out clearly, and all the employees should compete on fair ground. Otherwise, the whole idea can bring dissatisfaction and disillusionment among the employees. It shall be a miscalculation to award one employee and discourage many more employees.
Discussion
Is the structure and management of the organization well placed to solve the challenges and address the agency problems? The structure of the organization determines how decisions are made, and by giving decision-making power to the right part of the organizational structure, they organization is guaranteed to have a future. Researchers have identified that the structure of compensation followed by a firm guides its performance (Boeri et al., 2013). Notably, however, performance is not only linked to remuneration. Other factors, which include working conditions play huge role in the performance of an organization. Therefore, firms should make their employees comfortable at work. It should be a place that one enjoys his work.
References
Beierlein, J. G., Schneeberger, K. C., & Osburn, D. D. (2014). Principles of agribusiness management . Long Grove, IL: Waveland Press, Inc.
Boeri, T., Lucifora, C., & Murphy, K. J. (2013). Executive remuneration and employee performance- related pay a transatlantic perspective . Oxford: Oxford University Press.
Cornett, M. (2015). M - finance . Place of publication not identified: Mcgraw-Hill Education.
DuBrin, A. J. (2012). Essentials of management . Mason, OH: South-Western/Thomson Learning.
Khan, M. Y., & Jain, P. K. (2007). Financial management . New Delhi: Tata McGraw-Hill.
Shields, J. (2016). Managing employee performance and reward: concepts, practices, strategies . Port Melbourne, Australia: Cambridge University Press.
