Total Chemicals: Management-Union Cooperation Strategy Proposal

This report presents a workplace strategy proposal for Total Chemicals, a chemical company facing declining profit margins and internal challenges. The proposal, developed by a workplace relations consultant, Mr. Grey, focuses on management-union cooperation to improve the company's perfor...Read More

WORKPLACE STRATEGY PROPOSAL
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Table of Contents
Background:...............................................................................................................................3
Chosen Perspective:...................................................................................................................4
1. Identify your strategy’s goal and specific outcomes..............................................................4
2. What are the external and internal driving and restraining forces for change?.....................5
3. Risk assessment:.....................................................................................................................6
4. What are the strengths and opportunities presented by your strategy?..................................7
5. What specific strategies or actions will deal with the specific challenges (weaknesses &
threats) of your plan?.................................................................................................................8
6. What is your time-line? Do some strategies have to be implemented before others? Why –
what is the rationale?..................................................................................................................8
7. Are resources needed for implementation?............................................................................9
8. What are the clear roles and responsibilities of individuals and groups?..............................9
9. References:...........................................................................................................................11
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Background:
Workplace strategies are developed with the view of generating changes in the organization
to achieve further success or to counter present failure. Every strategy should have a certain
audience or group (Chu et al. 2016). Located in Bunbury region, (WA), Total Chemicals is a
chemical company of medium size. Founded by George Smith, this company used to
generate strain of vaccination which are proved to be effective in treating whopping cough in
cows. George Smith strengthened research and development activities of the company in
order to explore suitable and cost effective raw materials for the vaccination. Next leaders
failed to maintain the standard George initiated in the company and presently concentrating
on chemical products closely associated with agricultural goods and industrial solvents &
adhesives. Profit margin of this company is falling gradually even with the considerable hike
on the sales of the products. 700 employees work in this company, while 52% of this
workforce are with the company for more than 15 years of time. Employees of this company
are close linked with the two active unions, namely, Australian Workers’ Union (AWU) and
Association of Professional Engineers, Scientists and Managers, Australia (APESMA).
Australia's oldest and largest trade union Australian Workers’ Union represents workers of
different fields and segments, like, manufacturing, agriculture, plastics and chemicals, state
public services, local government, construction, health, hospitality, aquaculture, events etc.
Manufacturing opportunities are currently moving overseas; hence employment done on the
basis of contracts through AWU now-a-days. As the largest non-profit organization of
Australia, Association of Professional Engineers, Scientists and Managers, Australia is
representing more than 25000 workers. They play an important role in the employment of
middle to high level workers in different industries.
Considering the downturn of the company, the current board of directors has chosen Mr
Black as the new CEO of the organization by replacing Mr. White. Mr. Black and his
management team come up with new radical ideas with an aim to increase the productivity of
the organization. Presently, they are running far below than their other competitors in the
market. Growing pressure of the environmental authorities is creating obligations of flexible
production with huge environment taxes and regulations (Dechezleprêtre and Sato, 2017).
Their market in Asia is quite more flexible than Australian market due to lack of
environmental legislations there. Management, by intervening situations, put their focus on
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maintaining or increasing company's productivity along with the introduction of cost
effective strategies with a view of profit maximization. Productivity plans of Mr. Black and
his management team are generating stress among the board of members. In the same way,
they are also concerned about the future of the organization. They made an effort to analyse
the effectiveness of Mr. Black's radical planning strategy in the development of the
organization. As per the requirement of this assignment, 'Management-union cooperation in
Workplace' perspective has been nominated.
Chosen Perspective:
Management-union cooperation in Workplace:
Mr. Grey, a workplace relations consultant, has been appointed by the board of directors.
Board of directors are intending to introduce a plan which not necessarily causes disruption in
the organization (Currie et al. 2016). That is why, they are depending on the consultancy of
Mr. Grey in helping them to come out of this hazardous situation. Mr. Grey explores several
facts and has started analysing facts to prepare an effective strategy for the development of
Total Chemicals. Mr. Grey should consider the position of the management, workers and
unions in the development of the organization. Background of the organization are closely
connected with different social, economic, environmental and political factors of the nation.
Mr. Grey should be able interpret the influences of those factors in the development of the
organization. History of failure of the organization should be studied to understand how the
profit margin of the organization decreased with time (Dobbins and Dundon, 2016).
Strategies of George Smith should also be considered in this regard.
1. Identify your strategy’s goal and specific outcomes
After exploring the performance and background of the organization, Mr. Grey has started to
frame strategy proposal for the organization. He identifies the goals of this strategy in regard
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to the development of the organization. Partially keeping some of the strategies of Mr. Black,
Mr. Grey offers a plan with slight modification. He seconded the technological planning of
Mr. Black. He emphasizes on developing a inspection unit by engaging numbers of
experienced workers of the organization (Grant, 2016). This group will be responsible for the
selection of raw materials. He opposed the redundancy program of Mr. Black, as this can
cause unrest incidences among the workforce. Instead of cutting jobs, he suggests to reduce
the amount of bonus and other production costs.
Strategy’s goal:
 To achieve 6% profit margin in next 3 years
 To make Total Chemicals a better workplace for the workers and other stakeholders
 To encourage joint participation of management and union; take decisions
harmoniously
 To introduce new research and development plan to assess new source of
opportunities
Outcome of this strategy involves ultimate involvement of the management and unions
(McCormack and Johnson, 2016). Organizational workforce should accept the strategy in
order to make out desired outcome from it. Appropriate action plan should be framed to
utilize the strategy. Outcome is nothing but the product of plans and performances.
2. What are the external and internal driving and restraining forces for change?
There are different potential external and internal driving forces influencing changes in the
organization. In order to facilitate change, new strategy should be able control the influences
of these factors (Leonidou et al. 2017).
Industrial relations system:
Industrial relations involve the interests and contribution of management, unions, workers,
board of directors, competitors, suppliers, customers and etc in the development of the
organization (Johnston and Marshall, 2016). Strategy should be able to meet the needs of all.
Practice of ethical codes of conduct is necessary in addressing the needs of the stakeholders.
Industry:
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The plastic and chemical industry of Australia has a promising and sustainable future. It
employs almost 83000 people across the Australia. Different supply chains, research
activities are related with this industry. It supplies their products health care, educational,
technological and other organizations. This industry holds 10% share of Australia's
manufacturing activities. So, there is potential scope for Total Chemicals if they are
implementing properly strategies and planning.
Alternative employment:
Alternative employment involves the concepts of part time workers, seasonal workers,
contractual workers etc ((Leonidou et al. 2016). It also states the overtime arrangements of
the organization in increasing the productivity of the organization and decreasing the
production costs as well. Workforce of an organization is most important resources.
Management should understand their importance in the development of the organization.
Community:
Australian Workers’ Union and Association of Professional Engineers, Scientists and
Managers, Australia (APESMA) are two important and effective community connected with
the workforces of the organization. Apart from these two, various informal communities
come into existence as per the needs and scarcities of the workers. These communities have
strong networks and can be utilized in the development of the organization. Different
communities work for the interests of their own (Johnston and Marshall, 2016).
Government:
Total Chemicals should work according to laws and legislations of the nation. Illegal and
unethical practices can be detrimental to the development of the organization. Strategies
should be match the environmental regulations of the nation (Leonidou et al. 2017). In
Australia, local government plays an important role in controlling the activities of the
organizations. Management of Total Chemicals should consider the responses of local
government in this regard.
3. Risk assessment:
How have you assessed the risks?
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Risks are assessed through understanding the seriousness of this situation in the organization
(Thakor, 2016). Mr. Grey identifies risks while exploring several avenues of his strategy.
Grey initiates discussion with management staffs, board of directors, workers to understand
different issues and interests present in the organization. Potential risks are as follows-
 Technological advancements risks
 Production risks
 Financial risks
 Clash between union and management
Relevant predictions should be made to counter the influence of risks in the development of
the organization.
What are the weaknesses and threats of your strategy?
Not cutting the jobs of the employees of the organization, can be considered as biggest
weaknesses of this strategy. Redundancy program, though not useful for the employees, is
quite beneficial to cut the production costs of the organization in the time of crisis (Torabi et
al. 2016). Organization should think about an effective way to maintain the costs of these
employees. This strategy fails to provide concrete solutions that how this organization will be
able to maintain its product cost. Secondly, this strategy fails to consider the negative
influences of union in the production process of the organization.
4. What are the strengths and opportunities presented by your strategy?
Potential strengths and opportunities associated with this strategy are as follow-
 Technological advancements can be considered as one of the most potential strengths
of this strategy. It can reduce the hazardous incidences of accidents in the
organization (Chaves, 2016). It can facilitate smooth and timely production and can
achieve both employee and customer satisfaction by earning satisfactory profit margin
for the organization.
 Cancelation of the Redundancy plans can ensure the loyalty of the workers towards
the organization. It can reduce the influences of unions among the decisions of the
workers.
 Introduction of research and development activities can be considered another
strength of this strategy (Svensson et al. 2016). Research and development activities
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are closely connected with the foundation of the organization. This special touch may
help the organization to reach its previous height.
 Introduction of Inspection group may prove to beneficial to the development of the
organization (Chaves, 2016). Employees may enjoy this new role and become
motivated towards the activities of the organization.
5. What specific strategies or actions will deal with the specific challenges (weaknesses
& threats) of your plan?
Technological implementation may cause incidences of unrest in the organization (Al
Shobaki et al. 2017). Employees of the organization use outdated machineries in the
production process of the organization. These machines are slow and inefficient in
production. But employees are well accustomed with the use of those outdated machines.
They may oppose this advancement programs by withdrawing their co-operation. Unions
may play a manipulating role in influencing the behaviour of the employees in the
organization. In this condition, loyalty of the employees may save the situation. The emphasis
given on the human resources of the organization can act positively in this regard. Trainings
should provided by the organization to help them to adopt new technological advancements
(Wieland et al. 2017). Employee counselling tool can be very much effective to mould
responses of the employees in a productive way. Harmonious co-operation between
management and unions will reduce the cases of grievances in the organization. Profit target
adopted in this strategy will keep the management and employees motivated in imparting best
performance in the organization.
6. What is your time-line? Do some strategies have to be implemented before others?
Why – what is the rationale?
Strategy covers the period of three years. In these three years, Total Chemicals needs to
prepare itself for better achievements. Big target periods can be divided into short term goals
to make it goal oriented and effective (Csaszar and Levinthal, 2016). Short term goals and
related actions should be assessed and evaluated by responsible authorities.
New strategies are born from the ideas of old ones. Strategies of George Smith, Mr. White
and Mr. Black have been utilized to develop a new one. Mr. Grey does not discard all the
plans of Mr. Black as some of them are effective and beneficial to the development of the
organization. Research and development activities, initiated by George Smith led the
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foundation of the organization. Contribution and strategies of old CEOs helped the
organization to survive and sustain in different times. New strategy should consider the
relevancies of all in the implementation of new strategy.
7. Are resources needed for implementation?
Resources needed for the implementation of the strategy developed by Mr. Grey are as
follows-
Human Resources: Different kinds of workforces are required to work according to the
strategies of Mr. Grey (Reiche et al. 2016). Inspectors are needed to inspect the quality of the
raw materials going to be used in the production process of the organization.
Technological resources: New advanced machineries should be there to match the
requirement of the strategy. Organization should provide trainings to help the employees to
adopt new technologies.
Knowledge Resources: Board of directors and management team should explore relevant
knowledge to act more effectively with the new strategy of the organization.
Financial Resources: Organization should be able to convince their financial partners to rely
upon their strategies and to support them with financial aids (Reiche et al. 2016). Agreements
with the stakeholders are also crucial in this regard.
Community Resources: Organization also require local community resources in the
implementation of strategic planning. Support and approval of local government is vital in
this regard.
8. What are the clear roles and responsibilities of individuals and groups?
Individuals and groups related to the strategic planning of the organization are follows-
Board of Directors: Strategic decision making, research and development initiatives,
developing networks, providing secure and pleasant working atmosphere to the employees of
the organization (Dawson, 2017)
Management Team: Planning, organizing, controlling, evaluating, implementing in the
organizational context and to facilitate development, providing secure and pleasant working
atmosphere to the employees of the organization
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Unions: Taking care of the interests of the employees and preventing the incidences of
discrimination, Generating peaceful working atmosphere (Dawson, 2017)
Chemical Engineers: Facilitating technological changes in the organization, providing
training to the staff members of the organization
Production managers and supervisors: Imparting the roles and responsibilities of strategic
planning and Concentrating on self assessment and self development (Dawson, 2017)
Inspectors: Inspecting the quality of the raw materials and final goods of the organization
Labourers: Following the orders of the production managers and supervisors under the rules
and regulation of the organization.
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9. References:
Al Shobaki, M.J., Amuna, Y.M.A. and Naser, S.S.A., 2017. Strategic and Operational
Planning As Approach for Crises Management Field Study on UNRWA.
Chaves, M.G.F., 2016. Improving Management Students' Skills in Framing" Thought-
Provoking Questions": An Action Research. International Journal of Business and
Information, 11(1), p.27.
Chu, A.H.Y., Ng, S.H.X., Tan, C.S., Win, A.M., Koh, D. and Müller‐Riemenschneider, F.,
2016. A systematic review and meta‐analysis of workplace intervention strategies to reduce
sedentary time in white‐collar workers. Obesity Reviews, 17(5), pp.467-481.
Csaszar, F.A. and Levinthal, D.A., 2016. Mental representation and the discovery of new
strategies. Strategic Management Journal, 37(10), pp.2031-2049.
Currie, D., Gormley, T., Roche, B. and Teague, P., 2016. The management of workplace
conflict: Contrasting pathways in the HRM literature. International Journal of Management
Reviews.
Dawson, D., 2017. Measuring Individuals’ Virtues in Business. Journal of Business Ethics,
pp.1-13.
Dechezleprêtre, A. and Sato, M., 2017. The impacts of environmental regulations on
competitiveness. Review of Environmental Economics and Policy, 11(2), pp.183-206.
Dobbins, T. and Dundon, T., 2016. Workplace Cooperation at Aughinish Alumina.
In Developing Positive Employment Relations(pp. 229-247). Palgrave Macmillan UK.
Grant, R.M., 2016. Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation,
technology. Routledge.
Leonidou, L.C., Christodoulides, P. and Thwaites, D., 2016. External Determinants and
Financial Outcomes of an Eco‐friendly Orientation in Smaller Manufacturing Firms. Journal
of Small Business Management, 54(1), pp.5-25.
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Leonidou, L.C., Christodoulides, P., Kyrgidou, L.P. and Palihawadana, D., 2017. Internal
drivers and performance consequences of small firm green business strategy: the moderating
role of external forces. Journal of Business Ethics, 140(3), pp.585-606.
McCormack, K.P. and Johnson, W.C., 2016. Supply chain networks and business process
orientation: advanced strategies and best practices. CRC Press.
Reiche, B.S., Mendenhall, M.E. and Stahl, G.K. eds., 2016. Readings and cases in
international human resource management. Taylor & Francis.
Svensson, G., Høgevold, N.M., Petzer, D., Padin, C., Ferro, C., Klopper, H.B., Sosa Varela,
J.C. and Wagner, B., 2016. Framing stakeholder considerations and business sustainability
efforts: a construct, its dimensions and items. Journal of Business & Industrial
Marketing, 31(2), pp.287-300.
Thakor, A.V., 2016. The highs and the lows: a theory of credit risk assessment and pricing
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Torabi, S.A., Giahi, R. and Sahebjamnia, N., 2016. An enhanced risk assessment framework
for business continuity management systems. Safety science, 89, pp.201-218.
Wieland, H., Hartmann, N.N. and Vargo, S.L., 2017. Business models as service
strategy. Journal of the Academy of Marketing Science, pp.1-19.
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