Conflicting Values Regarding Organizational Design

Running head: CONTEMPORARY MANAGEMENT 1
Contemporary Management
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CONTEMPORARY MANAGEMENT 2
Contemporary Management
Conflicting Values Regarding Organizational Design
The primary purpose of organizational design is to identify dysfunctional aspects of
systems, structures, procedures, and workflow in an organization. It also realigns them with the
goals and realities of the current business. Ideally, organizational design aims to enhance the
people and technical side of the company. An excellent organization design results in committed
and empowered employees in addition to improved outcomes. However, for Parivar Company,
things are quite different because of the conflicting values regarding its organizational design
despite high employee turnover. For instance, some staffs believe that implementing the “People
Support Function” will help address the low retention rate in the organization while others think
that it might do harm than good.
Supporters of the design(People Support Function) contend that employees are in pursuit
of work environments that cares for them, and the implementation of People Support Function
will help address high employee turnover. However, those with differing perspective believe that
“People Support Function” is not effective in designing proper management structures and
processes. They think that it might worsen the high turnover rates while at the same time
alienating some staffs (Garvin, 2014). Additionally, it might not be applicable in other markets
such as the United States and Europe.
Advice for Sudhir Gupta about a Way Forward in Regards to the Value Conflict
As per the case study, the company is losing more employees compared to the number it
is recruiting. The company’s turnover is 35% signifying that the company does not meet the
needs of its staff (Garvin, 2014). Employee retention is an issue of great concern for companies
as they compete for top-notch candidates in a highly competitive economy. Low retention of

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staffs result in increased costs for the company, including reduced productivity, increased
training costs, and decreased engagement. Therefore, it is important for Sudhir Gupta to address
employee retention as it is crucial for motivating staffs and retaining talented employees. He can
achieve all these by adoption the “People Support Function”. Through this strategy, the
organization will have an opportunity to find out the reason behind the high turnover rate, and
consequently identify a lasting solution. It will also enable the company to treat each staff fairly
without showing favoritism.
Recommendations
Parivar Company has the habit of using exit interview in determining why a competent
staff is leaving the organization. The human resource department fails to understand that they are
missing a golden opportunity to fix issues and retain productive staffs before it is too late.
Therefore, the organization should focus on engaging with employees regularly to identify
factors that motivate them so that necessary adjustments are made. Also, the human resource
manager should review various kinds of literature and talk with expert in the human resource
field so that an appropriate solution is implemented in the company. They should also analyze
data such as hiring statistics, cultural surveys, and performance reviews. These pieces of
information will highlight the trend in the industry and what employees find attractive in a
culture. Conversely, the company should offer its staff’s right benefits to keep them healthy,
engaged, and happy, because some are shifting to other companies because of better pay.