Personnel Management & Organizational Behavior

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Student Name: Mark Espinoza

Major: Master of Business Administration


Project Title: Personnel Management & Organizational Behavior

Final Project on Personnel Management &


Organizational Behavior –

Art’s Food

Master of Business Administration


Strategic Management – Report for Case Study for Art’s Food
ESPINOZA, MARK
Student Name: Mark Espinoza
Major: Master of Business Administration
Project Title: Personnel Management & Organizational Behavior

BACKGROUND

The company Art's Food is an organisation with 28 years of history in the area of
services. The company's headquarters are located in Sabadell, although the services
are provided in numerous points of the Catalan territory. The company has three areas
(Educational, Hotel and Events), all related to catering.

The company achieves a higher turnover in the educational area, dedicated mainly to
serving the catering of a large number of schools (currently more than 150). This area is
a great entrance of money for the company, but it also requires a great structure and
organisation. The feeling of the worker is that the future and the viability of the company
mainly goes through the proper functioning of this area.

However, although in recent months the department has been meeting the objectives
set and continues to gain public and private tenders (which means more schools and
clients), there is widespread discontent among its workers, since the management does
not know not how to handle the situation and that translates into a poor environment.

Raquel Torrà is the director of the educational area, a competent and proactive woman,
with more than 10 years in the position. Above her there are only Josep Font, Chief of
Operations, and Roger Art, founder and director of the company. They have a way of
understanding the business world that is very classic and authoritarian, they do not take
their workers into account, and they only move by objectives. In turn, they derive full
responsibility from the area directors to communicate the decisions to their workers.
Student Name: Mark Espinoza
Major: Master of Business Administration
Project Title: Personnel Management & Organizational Behavior

They do not usually have direct contact with the workers and, if they do, it is scorched
and hostile.

Roger is only interested in obtaining good economic results without caring about the
personal situation of his workers. An example of this is that, on average, workers in the
educational area are having to do 10 extra hours a month to be able to fulfil their tasks.
This situation is common in recent months and, far from solving it, their opinion is
"they’re supposed to work, that’s what we pay them for". He has also been heard
saying, on more than one occasion, phrases such as "if they are not motivated it’s not
my problem, they should come motivated from home" or "they should manage with the
resources they have" when asked about strengthening the educational area team. All
this situation is generating negative repercussions for the future of the company in
general, and in the educational area, in particular, although management doesn’t seem
to notice.

The educational area is made up of 19 workers. As has already been mentioned,


Raquel is the director of the area and has a very experienced and prepared team, both
in the operational and commercial sectors. In turn, she is characterised by having
excellent communication skills and a very remarkable ability to lead, which is helping to
relieve the bad environment somewhat, but she does not know how long she will
endure.

Her team consists of 12 area coordinators who mainly perform the work at a distance
during their working day, as they are responsible, in an autonomous manner, to
supervise the proper functioning of the service of the schools in each area. The
remaining 6 workers are two commercial employees, who are responsible for preparing
and managing the active competitions; a personal assistant of Raquel, who offers direct
support to her and to the area coordinators; an administrative assistant, responsible for
customer service and various tasks; an office clerk responsible for managing routine
Student Name: Mark Espinoza
Major: Master of Business Administration
Project Title: Personnel Management & Organizational Behavior

actions; and a product technician, in charge of negotiating prices and managing


incidents with suppliers. In general, there is a good atmosphere among all of them,
although the continuous stress and the lack of empathy from the management are
beginning to generate problems.

The members of the educational area that are in office are as follows:

- Joan: salesman. He has been with the company for six years and is a severe
and responsible person. For him, the most important thing is to do his job well
above everything and everyone. He does not have a bad relationship with his
peers, but he is selfish. He considers himself well positioned and happy with his
situation as he receives bonuses for won tender.
- Enrique: salesman. This is his third year in the company and, unlike Joan, he
gets along very well with the other colleagues in the area. He is a very happy and
confident person, highlighting his excellent communicative ability. For him, the
current situation is neither fair nor sustainable.
- Lorena: She has been in her position for three years (assistant to Raquel) and is
a crucial player in the group. She is a very cheerful person and is confident and
confident in her work and training. She is the wild card of them all because her
position in the Educational area makes it indispensable for the proper functioning
of this area. She is dynamic and always takes the initiative and is willing to help
anyone who needs it. However, despite her importance in the company, she
does not feel valued by management.
- Elisabeth: The most senior employee, she is tasked with managing routine
actions. In spite of not having any type of training, she strives to do her job well
and has a great ability to be heard and avoid friction with customers. She is a
smiling person and always tries to improve the day for her companions.
- Julia: she has only been with the company for 5 months. She is an
administrative assistant and deals with customer service (parents), among other
administrative tasks. Being the youngest of the group, she does not want to enter
Student Name: Mark Espinoza
Major: Master of Business Administration
Project Title: Personnel Management & Organizational Behavior

into controversies and tries to go unnoticed. She is unsafe on many occasions,


as she notices that the work environment is rarefied.
- Anabel: has been working on the product for more than 8 years. Her significant
experience makes her a specialist in her field. She is well liked by her peers

Although the area coordinators do not usually work in offices, they have their common
work area in them. They are a cohesive group, but the stress and lack of recognition by
management are beginning to generate conflicts, resulting in a decline in service quality.
In general, most coordinators are open to helping colleagues, which facilitates their
work and the resolution of possible arising conflicts.

Finally, Raquel's personal assistant has informed the company of her decision to accept
a work offer, since she considers that she has not been sufficiently valued (when she
was admitted, she was offered a salary below what was said in the interview, and they
haven’t reviewed it since she’s been in the company). The situation stresses them a lot,
since she gets along great with Raquel and with Anabel, Julia, Enrique and Elisabeth,
and they form a very competent and cohesive working group, helping each other in
everything they need. They have the same opinion about Roger's management, and
they are considering taking similar measures if the situation does not change.
Student Name: Mark Espinoza
Major: Master of Business Administration
Project Title: Personnel Management & Organizational Behavior

DEVELOP

1. Analyse the current Art's Food situation in terms of human capital. Then,
from an analytical perspective, answer the following questions:

a. What is the position in which the staff of the Educational Area have found
themselves?

In the realm of education, employees:

 Express a sense of underappreciation from management, despite


consistently meeting set objectives and targets.
 Feel their compensation is not commensurate with their efforts.
 Experience demotivation from management.
 Work long hours.
 Lack job satisfaction.
 Express discontent and are on the brink of leaving their positions.
Student Name: Mark Espinoza
Major: Master of Business Administration
Project Title: Personnel Management & Organizational Behavior

Define the causes of how this point has been reached and what consequences
can be derived if you do not intervene.

Cause: How the Point was Reached Consequences if Not Intervened

Management does not consider Disruption of work-life balance, leading to low


workers' welfare. e.g., they work extra morale, low productivity, and increased
10 hours in a month turnover
Roger Art does not take its workers Employee discontent and apathy, adversely
into account when making decisions affecting company performance
Lack of recognition and appreciation Decline in service quality, underperformance,
by management decreased productivity, and high employee
turnover rate
No close partnership between Low morale, low job satisfaction, less
management and employees commitment from employees
No fair compensation for work done Decreased productivity, unhappy workers, low
morale, and high turnover rate
Managers' direct communication with Low job satisfaction, poor quality work, and
workers is intimidating and hostile employee retention issues
Student Name: Mark Espinoza
Major: Master of Business Administration
Project Title: Personnel Management & Organizational Behavior

Draw up the needs that you think the company requires and which Management
hasn’t detected.

Roger prioritizes achieving good economic results over considering the personal
situations of his workers. The management of Art Food's education department has
overlooked several key needs:

 Lack of teamwork promotion, which Schmutz et al. (2019) argue can encourage
employee growth, enhance job satisfaction, and reduce work stress.
 Overworking employees, requiring an extra 10 hours per month, totaling 120
hours annually, potentially violating labor laws limiting overtime to 80 hours per
year (Sabater et al., 2021).
 Inadequate recognition and rewards for employee hard work, leading to
disengagement, underutilization of skills, negative energy, and high turnover,
impacting productivity (Amoatemaa & Kyeremeh, 2016).
 Failure to provide a challenging environment where employees can fully utilize
their work and educational experiences.
 Below-par salary and benefits, with some employees not receiving any salary
increases since joining, despite arguments that higher wages can increase
productivity (Amoatemaa & Kyeremeh, 2016).
Student Name: Mark Espinoza
Major: Master of Business Administration
Project Title: Personnel Management & Organizational Behavior

2. Once the situation is analysed:

Define the stages of evolution in work teams and identify in which stage
the Educational Area of the company currently is.

 Formative Stage: Orientation and acquaintance, high uncertainty, setting


personal goals aligned with organizational goals, integrating new
members, social interactions.
 Conflict or Storm Stage: High emotions and internal conflicts,
disagreements on team goals, formation of sub-groups, crucial for team
building, ends with leader selection and hierarchy establishment.
 Normalization Stage: Resolving conflicts, emerging unity, working together
towards common goal, establishing social connections, solving
interpersonal differences, increased team performance.
 Performance Stage: Successfully achieving objectives and tasks,
seamless operation, commitment to company mission, delegation of
responsibilities.
 Adjourning Stage: Accomplishing team goals, focusing on completion and
documentation, formal acknowledgment of team efforts and successes.
 The Educational Area of Art Foods is currently in the conflict stage,
characterized by internal fighting, power struggles, structural issues, lack
of progress, unrealistic goals, concerns over excessive work, and excess
working hours.
Student Name: Mark Espinoza
Major: Master of Business Administration
Project Title: Personnel Management & Organizational Behavior

Identify the formal and informal teams that you detect in the company and justify
your response.

Formal teams are created by organizations for specific purposes, with official support.
Informal teams, on the other hand, form organically based on relationships and shared
interests within the organization (Daniel, 2018). Despite lacking official backing, informal
teams can still work towards common objectives and benefit from collective strength. In
the Educational department at Art's Foods, an informal team comprising Lorena,
Raquel, Julia, Anabel, Elisabeth, and Enrique has formed to support each other in a
challenging work environment characterized by low morale and productivity. Additionally,
there are 19 subordinate workers under Raquel in the Educational department, making
up a formal team established by the organization. Raquel, through her excellent
communication and leadership skills, has effectively fostered a cohesive group within
this formal structure.

Following the typology of Meredith Belbin, give a role to each of the workers in
the educational area who are in the office.

According to Meredith Belbin's team role typology, there are nine positions that falling in
three categories: thought-oriented roles, action-oriented roles, and people-oriented roles
(Mind Tools Content Team, 2022). The following are the nine team roles:

 The Shaper (action-oriented)


 The Implementer (action-oriented)
 The Completer/Finisher (action-oriented)
 The coordinator (people-oriented)
 The Team Worker (people-oriented)
 The Resource Investigator (people-oriented)
Student Name: Mark Espinoza
Major: Master of Business Administration
Project Title: Personnel Management & Organizational Behavior

 The Monitor Evaluator (thought-oriented)


 The Specialist (thought-oriented)
 The Plant (thought-oriented)

 Elisabeth is people-oriented and serves as both the Resource Investigator and


Coordinator, bringing positivity and happiness to her team.
 Enrique is an action-oriented Implementer, talented and conscientious, uplifting
the team with his upbeat demeanor.
 Joan, although a Monitor Evaluator, is egotistical and a loner, prioritizing his
interests over the team's, hampering its growth.
 Lorena, a Team-worker, is highly people-oriented, always willing to assist her
team members, but her talents are not acknowledged by management, affecting
her negatively.
 Julia, a Completer and Finisher, deals directly with consumers and prefers
avoiding conflicts. Anabel, also a Team-worker, is liked by her peers and has
been with the organization for eight years.

3. Tell us now about Roger's role as boss.

What type/s of power do you think he has?

A founder of an organization inherently has legitimate power (Peyton et al, 2019), as


does Rogers, who is both the founder and director. He also wields substantial power
over his subordinates, driven primarily by profit motives and showing little concern for
employee well-being. Additionally, he exercises coercive power through dictatorial
control, using threats, force, intimidation, punishment, and other means. While Roger
retains power in the organization, he has delegated some to Raquel, who supervises
the educational department and leads a team of 19 employees.
Student Name: Mark Espinoza
Major: Master of Business Administration
Project Title: Personnel Management & Organizational Behavior

What management functions do you think Roger performs? And what other roles
does he lack? Justify your answer.

Management involves accountability for the economic, planning, and regulatory aspects
of a business entity's activities. According to Juneja (2019), management functions are
planning, controlling, staffing, directing, and organizing.

Functions Rogers has succeeded in:

 Planning: Roger has effectively planned for the monetary gains of the firm, as
evidenced by increasing sales.
 Organizing: Roger has successfully brought together financial, human, and
physical resources to achieve organizational goals, particularly in financial and
physical aspects at Art's Foods.

Functions Rogers has failed in:

 Staffing: Although Roger has hired several employees, he has failed in formal
employee assessment, providing subpar salaries compared to the industry, no
salary increments, overworking and underpaying workers, and providing little job
satisfaction.
 Directing: Roger has not effectively led, supervised, communicated, or motivated
employees, leading to low motivation, lack of empowerment, and employee
supervision by subordinates rather than management. Communication between
management and staff is lacking, and employees are penalized for not
performing exceptionally. The leadership void is being filled by employees like
Raquel.
Student Name: Mark Espinoza
Major: Master of Business Administration
Project Title: Personnel Management & Organizational Behavior

 Controlling: Art's Foods lacks defined goals beyond financial growth, leading to
the absence of a controlling function. This absence has significant negative
impacts, particularly on Roger.

From the characteristics of a leader, what specific aspects should Roger work on
to be a more complete leader?

 Compassionate: Roger should practice listening, understanding, empathizing,


and supporting his employees.
 Communication: A leader should communicate effectively and be an active
listener to gain employees' trust. Roger should lead by example to increase trust
and team engagement.
 Teamwork: Roger should embrace teamwork in the organization, as it leads to
collaborative problem-solving and better outcomes.

Propose actions to improve those skills in communication, motivation, awards


and group cohesion.

 Communication: Roger should organize group meetings and discussions where


workers feel empowered, and their views are heard and acted upon. He should
set specific goals, communicate them to his teams, and help them come up with
ways of achieving them.
 Motivation: Roger and Art's Foods management should motivate its employees
by offering rewards such as promotions, salary increases, quarterly bonuses, and
opportunities for growth. Management should also be respectful, honest, and
supportive to improve employee morale and job satisfaction.
 Recognition: Most employees respond positively to rewards. The organization
should appreciate employees' hard work, ideas, and job performance by
acknowledging and rewarding them with small gifts, promotions, thank-you notes,
and time off.
Student Name: Mark Espinoza
Major: Master of Business Administration
Project Title: Personnel Management & Organizational Behavior

 Group Cohesion: Roger should introduce team activities that positively impact
employees and increase company efficiency, such as team-building activities.

What style of leadership should Roger have to improve the situation?

Rogers should adopt a servant leadership style, prioritizing the team and organization
(Canavesi & Minelli, 2022). This approach will benefit Roger by ensuring employees feel
heard, thus boosting productivity. It will also help him recognize his leadership
effectiveness through improved staff performance and capabilities, as it involves
providing strong support to employees. Additionally, this style will enhance
communication with employees, promote work-life balance and outside activities, and
provide a framework for team growth.

4. Lorena's leaving has gone down like a ton of bricks for Roger, who did not
expect it. He has realised that the situation is extreme, and has decided to
take action. He has given orders to hire two administrative staff to deal with
the high workload of the educational area, but, as well, he has thought
about the need to apply empowerment in the group. It is requested:

As an advisor, you must develop an empowerment Action Plan for Art's Food with
Roger:

Indicate the benefits of empowerment and improvements that can be obtained.

Empowerment focuses on providing employees with resources, autonomy, and support


to transform the workplace (Vu, 2020). The benefits of employee empowerment include
increased morale, productivity, job satisfaction, and profits. A more efficient team with
less friction can improve workplace culture and profit margins. Empowering employees
Student Name: Mark Espinoza
Major: Master of Business Administration
Project Title: Personnel Management & Organizational Behavior

enables them to make better decisions, leading to increased customer and employee
satisfaction.

Define one or more goals to achieve with this tool.

One of the best tools to consider is conducting employee and customer satisfaction
surveys every three months. These surveys can provide valuable insights into the work
environment, aiding in employee and customer retention. Additionally, the company
should prioritize training and development. This can help retain top talent, improve
productivity, job satisfaction, and profitability.

Choose a type of inspiration which Roger should use.

Roger should adopt inspirational leadership. This style enables a leader to positively
influence and motivate employees towards success. Teams with inspirational leaders
are more likely to meet and exceed their goals, with committed employees and
increased engagement (Vu, 2020). Employees prefer working with leaders who inspire
them, leading to greater commitment to the company under an inspirational manager.

Propose a series of actions and/or empowerment techniques.

Roger should consider the following techniques from Jessica Ruane (2022) to enhance
leadership:

 Set employees up for success by giving them opportunities to perform new tasks.
 Establish clear goals and boundaries to guide employees.
 Provide tools, resources, and platforms for employees to make decisions.
 Maintain open communication to promote teamwork and empower employees.
 Give employees full ownership and authority over their tasks once delegated.
Student Name: Mark Espinoza
Major: Master of Business Administration
Project Title: Personnel Management & Organizational Behavior

Plan these actions chronologically.

Week 1: Management forms work teams and identifies key areas for improvement,
creating an action plan.

Week 2: Group meetings are scheduled for management to oversee and support team-
led actions, focusing on solutions rather than dictating.

Week 3: Employees form mini-teams to discuss ongoing projects, provide feedback,


and share ideas.

Week 4: Use Statsmix to monitor project progress and key performance indicators,
updating feedback daily for team improvement.

Week 5-9: Implement ideas from discussions to achieve team goals, allowing
employees to work independently.

Week 10: Hold a meeting to review completed projects, ongoing work, and company
growth. Recognize and reward exceptional performance, including the most improved
employee.

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