Lightwrite Company is a small organization with its headquarters at Telford. The firm deals with designing, manufacturing and installation of neon lights across the country. The company was started as a family business by Louise and Bob Weymouth in 2001. Due to successful growth, the company began expanding significantly and opened two branches between 2006 and 2007 at Bridgnorth and Ironbridge. In addition, the company has been able to employ and sustain approximately fifty employees. However, during the global financial crisis, activities in the company took a turn and business started fading. As a result, some employees were dismissed. As business continued, the company was blessed to win a contract that proved to be a doubting task to the company since the company did not have many employees at that time. Additionally, most of the employees were demotivated. Therefore, this report analyses employment relationships at Lightwrite Company.
Main Players in the Employment Relationship. Lightwrite Company employs approximately fifty people in its three branch offices. The two main Chief Executive Officers, Louise and Bob, who work at Telford headquarters, are the crucial players since they form the management level of employees in the company. This means they are involved in the company’s decision making. The other main players in the employee relationship of Lightwrite Company are the designers and the electricians. These groups play a crucial role in Lightwrite Company because they are involved in the design and manufacturing processes of the different neon lights in accordance to the customer specifications.
Other players remaining in the employee relationship of Lightwrite Company are technicians, supervisors and the office staff who deal with phone calls and other office affairs. The technicians play an important role in supporting the designers and the electricians. This means designers and electricians depend on the technicians who assist them in accomplishing various tasks. When designers and electricians delegate duties to the technicians, certain managers are in place to supervise the work being performed by the electricians. This ensures there is continuity in the company. Finally, the supporting staff in the office deals with answering the customers’ calls, taking their orders and providing other queries that might be affecting them. Therefore, basing on the facts stated above, it is evident that the key players consist of the two chief executive officers, designers, electricians, technicians, supervisors and office staff.
Interests of the Main Players to the Employment Relationship. The main interest of the Lightwrite Company’s two chief executive officers is to ensure that the company strategies are constantly implemented and followed by the other employees in the organization. Secondly, it is their task to make crucial decisions that affect long-term business processes. In this case, it is in their interest to ensure that the company runs smoothly (Northouse 2007). The players who come next in terms of significance are the designers and electricians. Their main goal is to ensure that all the customers’ requirements are met. This means that they are the first people who receive the customer’s order specifications; then they start to create designs that are going to be manufactured.
Other players in the employment relationship involve the technicians. Their principal mission is to follow orders from the designers and electricians. In this case, they perform the actual manufacturing of the products after they have been designed by the designers and electricians. Supervisory managers are the other main players in the employment relationship of Lightwrite Company. Their main interest is to supervise the technicians to perform their duties efficiently. Finally, office staff are the last among the main players in the employment relationship and their task is to perform other office duties in Lightwrite Company.
Managerial Approach/Frame of Reference in Operation at Lightwrite. The managerial framework of the company is divided into three levels of management. The first level of management includes the top-level managers. In Lightwrite Company, the two Chief Executive Officers – Louise and Bob – are the top-level managers. The main aim of the top-level managers is to plan and organize all the business activities in the organization. In addition, it is their job to organize clear objectives where they are the final authority (Bamber, Lansbury & Wailes 2011). Then there come the second-level managers. These include the supervisors, electricians and designers. They are mainly involved in designing the products according to customer specifications. Additionally, they are supposed to institute training facilities to the subordinates. Finally, there also exists a group of the low-level managers in Lightwrite Company (Keynes & Krugman 2007). This group includes the technicians and the office staff. The two groups are responsible for daily routines in Lightwrite Company.
Managerial Style in Lightwrite Company. The managerial style of leadership in Lightwrite Company is extremely simple. It is the autocratic management leadership style. Autocratic management leadership style means the management of the company makes decision unilaterally without considering the opinions of their subordinates (Burke & Collins 2001). In Lightwrite Company, the management of the company does not consider the decisions made by their subordinates. For instance, they were firing their employees when the company was hit by the financial crisis without the consideration of other available options their subordinates might have provided (Kovac%u030C & Jesenko 2003). Second, one of the middle-level managers suggested that new employees should be employed or that the method of staff rotation should be introduced. In this case, Lightwrite management disregarded this option terming it as too expensive even though the existing employees were suffering.
Additionally, Lightwrite Company applies an autocratic management style because they do not have motivational skills. Lightwrite Company management is not considering any motivational skills for purposes of improving efficiency of performance in their company. For instance, they are cutting public holidays and Sundays making employees work during these days (Brealey, Myers & Allen 2008). Moreover, the management is not offering the employees any compensation for working during weekends. This directly means that Lightwrite Company management is applying an autocratic managerial style. Finally, the management of Lightwrite Company is applying the autocratic leadership style because they are in control of nearly all the business operations (Kinicki & Brian 2008). In this case, they are not giving the middle-level managers any opportunity to exercise their duties freely. For this reason, they are having poor employee relationship in the company.
Nature and State of the Psychological Contract. A psychological contract represents the unspoken terms and conditions of a contract between two parties that have grown over a period of years. In this case, there exists a psychological contract between the management of Lightwrite Company and the company’s employees (Guest & Conway 2000). It should be noted that, in a psychological contract, the terms and conditions are not written down anywhere; they have just emerged due to the working conditions the two parties are having. In this case, the first psychological contract created by the two parties is mistrust. The employees of Lightwrite Company do not trust the authorities (Hundstrup Nielsen 2007). This is due to the way the management dismissed some of their employees when they were experiencing difficulties. The employees have a feeling that they are going to be fired again once the company starts having trouble.
In addition to this, the company employees do not have any motivation or freedoms of performing their duties. The management of Lightwrite Company is watching their employees closely and has cut down their holidays and Sundays (Rousseau & Schalk 2000). Additionally, Lightwrite Company management does not increase salaries or rewards its employees for the sacrifices they are making (Duh, Belak, Tominc & Rebernik 2007). It is because of this psychological contract that Lightwrite Company is experiencing employees resigning willingly to look for other jobs. Second, they are experiencing an increase in illnesses among employees since they do not have any other days off.
Causes of Conflict. The main cause of conflict in this employment relationship of Lightwrite Company is the management managerial style. The management of the company does not consider the views of their subordinates. Second, the employees are being closely watched. Finally, the management of the company is not providing the employees with any incentives that would motivate them despite the numerous changes that have been made concerning their working conditions (Rasmussen 2004). For this reason, the management of Lightwrite Company should consider changing their management styles so that they can improve employment relationships in the organization.
The first step to improve employment relationship in Lightwrite Company is to change the management leadership style. This is where the management should consider optional decisions brought forward by different employees (Goleman, Richard and Annie 2002). Second, the management of the company should try to introduce new methods of motivating the employees. One of the effective methods is to provide employees with incentives due to the sacrifices and additional work they perform. This will boost the morale of the employees in Lightwrite leading to motivation and devotion. As a result, this will lead to effective performance in the company. In addition, the management should not consider dismissing their employees during difficult times as part of their strategy. Instead, they should consider other options suggested by the employees. Finally, the management should create room for creativity among the employees. This will lead to better efficiency since the employees will be able to conduct their duties freely due to minimum supervision (C%u030Cesen 1992). With these recommendations, Lightwrite Company is likely to improve employment relationships in the company.