Discussion Week 2

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Management

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Jun 18, 2024

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docx

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Many scholars have argued for the interdependence and bidirectional relationship between reward systems (pay and benefits) and organizational cultures. One of the most commonly used classification of organizational cultures is the Competing Values Framework (CVF). Considering the organization you currently work for (or an organization you have worked for in the recent past), Complete the Organizational Culture Assessment Instrument(OCAI) questionnaire: click here : Organizational Culture Assessment Instrument (OCAI) . You will need to create an account using an organizational email - the site currently does not accept gmail, hotmail, yahoo or .edu emails. If you do not have an organizational email, please complete the PDF version. OCAI PDF VERSION . Use this excel spreadsheet to score the OCAI PDF version - OCAI SCORING SPREADSHEET . Questions: 1. Share your results from taking Organizational Culture Assessment Instrument. What is your personal assessment of the current and preferred culture in your organization and is there a difference between the two? How does your current culture compare with others in the same sector? The report does not include comparisons with other companies in your industry. Please use your knowledge or research about the cultures and compensation approaches of peer and/or leading companies in your industry. 2. Given your readings on reward systems, and your research on the relationships between reward systems and organizational cultures: 1. Describe the relationship between your current organizational culture and its reward systems (pay and benefits) - is there an alignment between the two? 2. Offer some suggestions for better aligning your organizations reward systems and current organizational culture Discussion Week 2 Securitas is a global security company with many locations around the world. The results of the Organizational Culture Assessment Instrument show that Securitas is 33.33% clan, 9.17% adhocracy, 21.67 market and 35.83% hierarchy. Cameron (n.d.) describes clan as friendly and
people-oriented, this is most important to me as we work closely with one another. Adhocracy is defined as a dynamic and creative work environment that emphasizes individual initiative (Cameron, n.d). Security guards need to be self-initiative and remain vigilant in doing their jobs while no supervision is on-site. Hierarchy is defined by Cameron (n.d.) as a formalized and structured workplace. Securitas has many levels of supervisors including a CEO, global managers, national managers, regional managers, district managers, and account managers and this includes global, national, state, and site-specific policies concerning what is required for every client site. Achieving market dominance is important for all organizations and Securitas is no exception. Market culture is a results-based workplace that focuses on goals to achieve market dominance and emphasizes its reputation to get things done (Cameron, n.d.). As a site-specific manager, I would prefer clan to be at 51.67%, adhocracy at 1.67%, market at 20%, and Hierarchy at 26.67%. These preferences are due to being a site manager with innovation and hierarchy not as important as the relationship between co-workers. Allied Universal is one of the main competitors to Securitas Incorporated. According to Glassdoor, (n.d.) a website for former and current employees to leave anonymous reviews, Securitas and Allied are ranked the same in overall rating, culture and values, diversity and inclusion, compensation and benefits, and positive business outlook. Furthermore, Securitas ranked higher in work-life balance and senior management and Allied ranked better in career opportunities, CEO approval, and recommend to a friend (Glassdoor, n.d.). However, these ranking differences were only by .1 or .2 on a scale of 0-5. Therefore, I would conclude that there is not much of a difference between these two organizations. Reward systems are an essential part of hiring, training, and retaining employees (Luthans, 2021). "People don't leave bad jobs, they leave bad bosses," is a famous quote that can lead a person to infer that bad managers are the sole reason for a person to leave an organization. However, Luthans (2021) states that "basic research has found that reward systems have a significant impact on employees' perception of organizational support and leadership." Therefore, reward systems can influence how an employee views their work culture,
boss, and/or managers. There are two types of reward systems monetary, rewards with recognized cash value, and nonmonetary, no recognized cash value (Heneman, Fisher, & Dixon, 2001). Part of an organization's culture can be identified by the way the organization allocates rewards between the business to the employee. The hourly rate varies greatly in the security field because of the levels of security from unarmed guards, armed guards, certified officers, and retired officers. The average unarmed guard in TN is $16 and approximately $19 for armed guards (Glassdoor, n.d.). The contract between the client and Securitas designates the hourly rate and oftentimes benefits at Securitas. However, this leads to the clients having partial control of how much employees make, and the contracts are only looked at every year. Therefore, different sites pay the employee differently and may have different benefits and rates for those benefits depending on what site the employee is working. For example, at the site I manage the hourly rate is $23.50 with the benefits package coming from Oracle, while at the Amazon sites employees have an $18.00 hourly rate, and Securitas provide the benefits. These contracts are generally reviewed every year and generally do not include bonuses or excess funds to reward employees for the quality of their work. Therefore, I use nonmonetary rewards to boost morale at my site including just thanking all the employees for the job they do. Due to the nature of the work, it does not appear that Securitas' organizational culture and reward systems are aligned. Securitas claims their culture is one of responsibility, ownership, and entrepreneurship. Once employees reach a regional manager position this may be true but is not so at the entry-level positions. There is no reward system beyond the starting pay to reward those employees who do good work and all employees at the site are paid the same regardless of length of tenure. This results in a 100+% turnover rate every year. However, the high turnover rate does increase the possibility of promotion for some employees. Furthermore, this leads to what is commonly referred to as warm body sites, where the employee does nothing, is not expected to do anything, and is mostly there so the client can say they have security on site.
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