PERFORMANCE AND FAIRNESS IN MKL LTD 7
Performanceand Fairness in MKL Ltd
Performanceand Fairness in MKL Ltd
Runningan organization involves a responsibility of upholding a number oforganizational values and universal ethics. Among the many values ofthe organization is the performance of the human resources towardsthe achievement of the organizational objectives. To achieve this,the management must interact with the people in the organization andallocate tasks, roles and responsibilities (Langdon,2000). In thisrelationship, the management must uphold fairness as theorganizational principle as well as a universal value. In this light,this paper will describe how my organization will uphold performanceand fairness. My organization is a soft drink company called MKL Ltd.The company produces soft drinks and sells to the local market, butwith ambition to expand internationally in the next ten years.
Myrole in the organization is that of the Chief Executive Officer asthe founder of the business. My purpose of the organization is toformulate policies and organize the management to developorganizational guidelines. In addition, I am involved in themanagement of all the departments as well as the production sectors,so as to standardize the quality of our output with our customers’expectations. As the CEO, I am the person who authorizes expenditureof top management and approves the budgets of the firm. In terms ofallocation of duties, I am the one who approves the human resourceplan as well as the privileges that the staff at the company shouldenjoy.
Oneof the main challenges of my role and position at MKL Ltd is theupholding of ethics from the regular tensions that involve ethicaldecisions and dilemmas. These decisions arise due to the need by themanagement to increase the performance of the organization and takecare of the interests of the employees as well. As the CEO, I amcommitted to both of the two concepts as they are critical to thesuccess of the company. I am committed to increasing the performanceof my organization and uphold fair treatment of the employees at MKLLtd. Through the commitment, I handle cases that involve suchdilemmas in the production department, the shareholders, in the boardof directors and when dealing with customers.
Oneof the ethical tensions is in the allocation of duties andresponsibilities. Most of the employees are engaged in the process ofallocation of duties so as to give each and every employee his mostpreferred job. At the same time, the human resource manager tries tobalance the expertise of the employees during the distributionduties. As a result, the human resource manager may allocate anemployee the job description he or she does not prefer. As a result,the process involves feeling of unfairness on the side of theemployee. However, on the side of the manager, the distribution isfair for the sake of the performance of the company.
Whenthe two sides clash in decision making, the management usually refersthe issue to my office. When such a case reaches my office, I try toweigh the two benefits to the company as well as in the interest ofthe employee. In this regard, I consider the qualifications of theemployee in terms of education and past experience. To be fair to theemployee, I normally consider the job in the company that he or shecan do with his prevailing qualifications. Through suchconsideration, I evaluate the output that the employees would givewhen he is working at the position he wants against what the managerhas located.
Beingfair to the employees is one of my most important commitments. Thisis because their performance is higher when their interests are takencare of fairly. While I consider the performance to be beneficial tothe company, I always take a humanistic look at all the circumstancesthat employees face in the company. As a result, I do not view thesituation from the work side, instead, I consider the interests ofthe employee first. This is because the employee is important inmaking the interests of the company succeed. According to (Gilliland,2005) the performance of the organization is significantly determinedby the level of motivation and comfort that employees have worked ina company. Therefore, treating my employees fairly will reflect inthe overall performance of the company.
Anothercritical area where ethical tensions are present in my organizationis the relationship between the board of directors and theshareholders. Since this is a small company, there are fewshareholders who are not part of the board of directors. To beprecise, only five shareholders are not part of the managing board.These shareholders are two years old since they all agreed to converttheir loans to the company into equity shares. To be fair to them,the company should present financial statements every year and callthem for the Annual General Meeting, the AGM. In addition, all theirrecommendations on how the company should be run are put intoconsideration. This is the main way we can be fair to them.
Anotherway of being fair to the shareholders is to give them dividends atthe end of every financial year. At the same time, the company needsto increase its performance in future through expansion. Theexpansion of the company will be facilitated if we Plough back theprofits made every year into capital. As a result of the use ofprofits for expansion, the dividends paid to shareholders will bereduced or foregone. This is not fair to the shareholders, especiallywhen considering their short term financial interest in the company.To solve such a situation, I always consider the interests of the twosides. In addition,I talk to the shareholders and present the bigpicture of capital gains that come along with the expansion of thecompany. As a result, they feel it is better to forego the short termgratification from dividends and benefit from capital gains in thelong term.
Onthe side of employees’ relationship with the customers, there aresituations that call for ethical considerations against performance.The employees sometimes find it difficult to convince the customerabout the changes that have taken place in the design and packagingof the product. We consider our customers as part of the company, andwe like their inputs. To be fair to them, we carry a market researchwhenever we intend to make changes to the details of the product.This is in the interest of the company to increase the performance ofthe soft drink in the market. As a way of increasing the competitiveedge, we regularly introduce new designs, new flavors and packagingstyles. Therefore, to achieve the two concepts, we inform customersin advance through advertising.
However,the relationship between the employees and customers is exploited bysome corrupt employees. In the company, there are cases whenemployees try to practice some corruption by selling goods tocustomers at retail, but recording in the company books of account aswholesale price. These employees take the difference as the profit,while some collude with the customers to share the benefits. The samecase applies to the way the some corrupt employees in the suppliesdepartment relate with our suppliers.
Theyinflate the buying price and collude with some suppliers to cash inand share the increased price value. Through such schemes, theemployees are unfair to the company and reduce the performance of thefirm. However, after some honest employees reported this to me, Ihave since strengthened the auditing department to make sure that nosuch instances are repeated. This has prevented corruption andpromoted performance in the operations of the company, for the lastsix months. At the same time, audits have ensured fair prices for thecompany in both the sales side and purchases side.
Operationsand organizational structures of MKL Ltd are based on strongorganizational values and respect for people. In this regard,commitment to performance and fairness in the company is one of thetop values that we endeavor to promote at the company. As the CEO, Iface a lot of challenges when the ethical tensions that involvecommitment to fairness and promotion of higher performance at thecompany. Through my leadership, the company has been able toimplement policies that have seen the company improve the performancegradually and upholding the values of fairness.
Gilliland,S. (2005). WhatMotivates Fairness in Organizations? Scottsdale,AZ: IAP
Langdon,D.G. (2000). Aligningperformance: improving people, systems, and organizations.Hoboken, New Jersey: Jossey-Bass/Pfeiffer