What are the details and facts from the case that contribute to the organizational problem of the company
The Lloyd’s Register Group (LRG) provides independent assurance for quality to companies operating high-risk, capital-intensive assets in the energy and transportation sectors, to enhance the safety of life,
property, and the environment. This helps its clients to create safe, responsible, and sustainable supply
chains. Safety has been at the heart of LRG’s work since 1760 and the company invests time, money, and
resources to fulfill Lloyd’s Register’s mission: to protect life, property, advance transportation,
engineering education, and research. LRG helps ensure a safer world through their broad knowledge, deep experience, and close relationships. LRG is also one of the world leaders in assessing business processes and products to internationally recognized standards. The standards are either those of major independent bodies or ones that LRG have
Developed themselves. From process design to in-service operations and decommissioning, LRG aims to deliver complete lifecycle and risk management solutions to help ensure the safety, integrity, and
operational performance of assets and systems. Their clients are typically managing large-scale, highvalue assets where the cost of mistakes can be very high, both financially and in terms of the impact on
Local communities and the environment. In such setting, organizations need advice and support they can trust. LRG employs 8,000 people who work in 186 countries. The company upholds the principle that
business assurance is not something the business does; it defines the business. The management believes
that maximum control ensures that their people and processes are linked to their clients at a performance standard set by the company. The main objective of the company is to gain a significant standing in the market as their quality system becomes integrated into their normal everyday activity.
Although the company has a well-established goal, it can be noticed that individual strategies of the employees do not follow a system or a specific metric. The same issue can be observed in the executive performance reviews since they do not follow a system aside from the financial performance of the company. These problem areas are attributed to the “closed-loop top management system” that the company practices where decisions are centralized to the top management of the company. This caused the employees to lose their voice in the continual improvement of the different processes of the company. Some of the clients have also relayed through the feedback system of the company that the business strategy of each individual employee does not have a significant connection to the operational performance of the entire company. The business strategies of the employees are solely based on a general course instead of a specific course of action required in a specific situation. After the management has reviewed all the areas of the company that needs to be improved particularly for their people and
their system, they decided that refresher trainings must be conducted in order to align the individual
business strategies of their employees to the business strategies established by the company in the first
place. The company also plans to set quantifiable targets and goals that will measure the individual performance of the employees. After all, the goal of the company is to integrate quality to the core processes of other businesses.
What are the details and facts from the case that contribute to the organizational problem of the company?
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