Organizational Effectiveness Amid the Labour Crisis Essay

Organizational Effectiveness Amid the Labour Crisis - Essay Example Professor Peter Cappelli further argued that the problem arises because of the lack of competency to manage the welfare of employees. On the other hand, Blackler and Shimmin (1984) anticipated that the demands for cost savings and improved efficiency will raise many issues of conflict within the organization based on certain events that has been affecting the UK economy. The means to organizational effectiveness were proposed by management theories that were believed to have provided solutions to dilemmas faced by businesses in the past. â€Å"New and theoretical knowledge often becomes part of the repertoire of the science of organisational behaviour, functioning as technologies of regulation which are used to control and discipline employees† (Thompson and McHugh, 2002, p. 297) In addition, these were aimed at discovering the patters to employee behaviour, and the forces that define employee work morale. The scientific management theory concentrated decision making in the ha nds of the employers, while employees were regarded as no more than "manpower—the energy or force required to propel the organizational machine† (Morgan, 1986, p.29). Alternatively, the human relations movement was able to identify other key aspects to employee motivation, and extended the role of the manager. Many changes have occurred since the Industrial Revolution, and while monetary benefits are still the primary objectives in seeking for employment, some tendencies are no longer observed. The assumed patterns of behaviour by employees relevant to their personal and financial interest in the company is hard to prove these days. Current Labour Trends Developing countries are not the only ones to suffer the blows of recession. The United Kingdom, despite favourable performance in the stock market, is also faced with problems associated with the rise in costs of goods and services. The UK per capita income has declined tremendously owing to the trends in the labour ma rket—to include unemployment, underemployment and part-time services. According to the Office for National Statistics (ONS), the unemployment rate increased to 8.1% in 2011, and jobless rate for 16 to 24 year olds totalled to 991,000 in the first quarter (BBC, 2011). Result of the survey by the EEF, a manufacturers’ organization in the UK, showed that the manufacturing sector, which is among the highest provider of jobs, averaged 2.2% in settlements for laid off employees. As a result, the number of people claiming jobseeker’s allowance rose by 19,600 in May, which was twice as expected (Peacock, 2011). The rationale behind the decisions of many companies in the United Kingdom to terminate services of a large portion of their workforce has been defined by economic professionals. The firms are inclined to regulate their internal costs to compensate for the drop in revenues. The government was first to take the move, â€Å"with the vocal support of the bankers wh o caused the recession, by deliberately creating unemployment with public sector cuts†, secretary general of the GMB union, Paul Kenny, said (as cited from Peacock, 2011). Similarly, manufacturers worry about the ever increasing cost of production, and tried to reduce allotment for salaries by retrenchment and insisting overtime on those not removed from the payroll. Others chose to outsource their operations, and resulted in reduced domestic employment. Underemployment is a different issue. Because there is not enough full-time jobs available, underemployed workers were