Sample Essay

Topic: Importance of Organizational Development

Summary

Gulf States Metals is a company that refines nickel and it was created by its parent company International Metals Inc (IMI). GSM also deals is copper, cobalt and ammonia sulfate and it’s in the operation for 8 years. GSM’s performance is getting worst day by day and it lost $1 million last year. Company haven’t experienced positive trends and the reason for this slump are factors like diminishing demand for copper and nickel, condition of the equipment and labor problems.

The cost of raw materials is increasing so it’s quite difficult to show profitable trends. Different changes occur in GSM’s policy because they want the company on right tracks. IMI hired a consulting company for GSM but the result was the same and GSM experienced downsizing. The organizational structure is quite similar to other production companies and the senior executive of GSM is the general manager who reports to the Group VP. After that there are Plant Managers, Director of operations, Director of Engineering and the Director of Administration. The production process is quite complicated and it can be stopped and the plant operates on 24/7 basis. The plant environment is rough and rusty in nature. IMI has promoted the plant manager to general manager and they are relying on him to change the current scenario. HR manager is interested in organizational development policies and he believes that this slum is due to poor management by the previous manager. The employees of GSM are unfamiliar with training and development and all the training they have was on the job. A series of interviews were conducted in order to get aware about the actual problem and how organizational development and restructuring is possible. The interviews resulted in wide and varied responses and all the employees are blaming other for this slump. The general manager has two years to fix the issue because IMI would close GSM if the same trend goes on.

Statement of the Problem

GSM is facing a number of problems and these problems have created chaos and havoc in the organization. Lack of training and development, prejudicial attitude of employees over other employees, lack of charismatic leadership and employee motivation, autocratic behavior of the senior employees, ineffective equipment, inefficient management style, lack of autonomy etc are the basic problems employees are experiencing. Similarly company is experiencing losses from day one and GSM haven’t experienced positive trends.

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