Club Chaos

INTRODUCTION

Club Chaos is a large not-for-profit company with an extensive organizational structure. Presently, there are many organizational problems affecting Club Chaos, which are cumulatively leading to the demise of the organization. The problems at Club Chaos really start at the top of the organization. The individuals who control the organization have failed to implement policies and procedures which are conducive to a good work environment which encourages hard work and efficiency. These problematic issues will be discussed in detail followed by feasible alternatives, recommendations and implementations.

The first of these problems is the lack of organizational goals. There are no concrete goals and objectives set for the organization and as a result, management is not able to communicate the club's plan to its employees. Consequently, employees do not have a clear focus of the tasks that need to be achieved, or the overriding direction of the organization. Secondly, the club has a recruiting system based on nepotism. There is no system implemented to recruit qualified individuals who have acquired the necessary skills and experience to perform their jobs. This is especially a problem associated with management appointments. The same system does not allow for improvement of current employees by way of promotion. These two issues collectively have resulted in high turnover rate at Club Chaos.

Furthermore, there is a lack of formal training programs designed to increase the efficiency and productivity of both employees and management. Currently, there is also no formal performance evaluation or appraisal system in place. These two initiatives implemented together form a system whereby the training allows employees to know what is expected of them and the appraisal and reward system motivates them to work efficiently.

Finally, all of the aforementioned problems have led to the overall work environment at Club Chaos to be disastrous. The constant infighting of employees, lack of communication between employees and management, lack of motivation and leadership and job security, and finally the general short-term mentality of management all contribute to poor work environment. These issues are what have lead to all of the problems relating to Club Chaos' work force, such as high turnover and employee theft.

ORGANIZATIONAL GOALS

The lack of organizational goals is one of the root problems affecting Club Chaos. Due to conflicting goals and the absence of formal plans, employees in the organization seem to feel confused and directionless. It is vital for an organization to communicate explicitly to both managers and employees what the mission and objectives are. This creates a sense of direction for the company and unites all members of the organization to accomplish the goals at hand. At Club Chaos, however, management's actions do not reflect their mission: to provide high quality service to customers. It is evident that Club Chaos may have some conflicting strategies as seen through trying to achieve high quality service and facilities, while drastically slashing costs. For instance Rupert, the former executive chef, was instructed to keep service levels high but on the other hand, he had to maintain low food and labour costs. This led to inconsistent results from the kitchen staff. Clearly, standards set were not adequate to achieve the level of quality and service they desired. Hence, it is crucial that the club establish appropriate and achievable organizational goals and make sure they are in line with the club's mission.

A by-product of not establishing organizational goals is the disorganized nature of Club Chaos and lack of communication. There is no order within the company and important information is not communicated to employees by managers, which leaves staff members without any direction. A prime example of how communication failed within the club was when managers and employees forgot about a wedding party until the day of the event. Evidently, poor organization has contributed to the company's many flaws.

Recommendations

Firstly, in order to begin resolving this issue, it would be necessary to reassess the company's mission statement. At present, they have defined their business as a not-for-profit organization, however the nature of the business belongs to a very profit-oriented industry. This appears to be causing conflict because they are trying to operate in two different directions. Club Chaos must identify where the company's strengths lie, and given these they must decide on the most feasible path to take. Once a more specific objective has been established, it should be communicated from the top down to all employees and staff. If managers and employees have a common understanding of what their company represents, they will be more likely to work towards achieving the company-wide goal.

In addition to setting a proper organizational goal, the company should establish smaller operational goals and set deadlines to achieve them. This includes assigning specific job tasks to employees or teams of employees, instead of assigning redundant jobs to everyone. This will provide employees with a sense of responsibility that will help them focus on a performing a particular task to their greatest ability. Moreover, delegating tasks to certain individuals or groups of people helps ensure that nothing will be overlooked. This is a much more efficient approach, as it can be difficult for managers to oversee everything themselves. Even though it will take time to designate specific job tasks to individuals within the club, it will ensure that all business activities are taken care of and it will be easier in the long run for evaluating employees.

TRAINING PROGRAM

Another possible cause of the high employee turnover rate is the fact that new employees were never properly trained by managers. Workers need to be taught how to carry out their duties correctly and in an efficient manner, especially if they do not possess similar job experience. Managers at Club Chaos have extremely high expectations of their employees, yet they do not put in the effort to help them reach that level. Instead of being proactive by implementing a solid learning foundation for staff, management takes on a more reactive approach by terminating employees who they believe are not performing. It is unfair to punish employees in this manner since ultimately, management is at fault.

Although the case indicates there is no money in the budget for formal training for new or existing employees, job training programs