Addressing Bad Management Practices in a Family Owned Oil Field Environmental Organization: A Longitudinal Case Study of a Management Turn Around
Abstract
Abstract. Bad management practices can plague any organization and can be an on-going challenge for organizations of all sizes. In the case of Extra Environmental, Inc. (EEI), bad managementhas had a more significant impact as it permeated throughout every major department in the company. A culture of bad management has entrenched itself at EEI, while the ownership partners operated as if bad management practices were a byproduct of the oil and gas industry. A case study, used to undertake this report was based on the uniqueness of the parameters and specific measures taken to address the challenges. The case study identified five (5) key problems, as detailed below, that was studied, diagnosed, and addressed, to meet this case study’s objectives. This case assessed the steps employed to address the specific bad managementpractices, and to gain an understanding of what good management looks like so corrective actions can be employed to aid an organization. The strategies and activitiesundertaken in this study focused on not only fixingbad management practices, but also to create strong management functions inan organization and stabilize their workforce and grow the organization. Cultural and change aspects were also key factors in this study in that they are foundational components that must be addressed to gain any level of success in turning around bad management practices at an organization. Thus, a compilation of diagnosis, corrective actions, change, and culture were identified as the key success factors in this study as well as the support given by many of the literature resources used in this study. It was the financial impact, as well as other major problems identified in the due diligence process, that created the rationale for this case study.
Keywords. Management practices, Environmental Organization, Management.
JEL. E01, Q00, Q50.
References
Amboise, G.,&Muldowney, M. (1988). Management theory for small business: Attempts and requirements. Academy Management Review,13 no. 2 226-240.
Ashby, W.R. (1947). Principles of the self-organizing dynamic system, J. Gen Psychol, 37, 125–128.
Bartholomew, S.,& Smith, A.D. (2006).Improving survey response rates from chief executive officers in small firms: The importance of social networks. Entrepreneurship: Theory & Practice, 30(1), 83–96. doi: 10.1111/j.1540-6520.2006.00111.x
Batt, R.,& Colvin, A.J.S. (2011). An employment systems approach to turnover: Human resources practices, quits, dismissals, and performance. Academy of Management Journal, 54(4), 695–717. doi: 10.5465/AMJ.2011.64869448
Beer, M. (1997). The transformation of the human resource function: Resolving the tension between a traditional administrative and a new strategic role. Human Resource Management, 36(1), 49–56. doi: 10.1002/(SICI)1099-050X(199721)36:1<49::AID-HRM9>3.0.CO;2-W
Blair, M. (1995). Ownership and control. Washington, DC: The Brookings Institution.
Bloom, N., Sadun, R., & Van Reenen, J. (2012). Does Management Really Work? Harvard Business Review, 90(11), 76-82.
Boxall, P.,&Macky, K. (2007). High-performance work systems and organizational performance: Bridging theory and practice. Asia Pacific Journal of Human Resources, 45(3), 261–270. doi: 10.1177/1038411107082273
Bureau of Labor Statistics (BLS). 2003. Local area unemployment statistics.http://stats.bls.gov/lau/. Accessed on October 3, 2009.
Burton, M.D.,& Beckman, C.M. (2007).Leaving a legacy: Position imprints and successor turnover in young firms. American Sociological Review, 72(2), 239–266. doi: 10.1177/000312240707200206
Cardon, M.S.,& Stevens, C.E. (2004). Managing human resources in small organizations: What do we know? Human Resource Management Review, 14(3), 295–323. doi: 10.1016/j.hrmr.2004.06.001
Carney, M. (2005).Corporate governance and competitive advantage in family-controlled firms. Entrepreneurship Theory and Practice, 29(3), 249–265. doi: 10.1111/j.1540-6520.2005.00081.x
Checkland, P.B. (1993). Systems thinking, systems practice, Wiley, New York.
Cherns, A. (1976). The principles of sociotechnical design, Human Relations. (8), 783–792. doi: 10.1177/001872677602900806
Chrisman, J.J., Chua, J.H., &Litz, R.A. (2004).Comparing the agency costs of family and non-family firms: Conceptual issues and exploratory evidence.Entrepreneurship Theory and Practice, 24(4), 335–354. doi: 10.1111/j.1540-6520.2004.00049.x
Dalton, D.R., Daily, C.M., Ellstrand, A.E., & Johnson, J.L. (1998). Meta-analytic reviews of board composition, leadership structure, and financial performance. Strategic Management Journal, 19: 269-290. doi: 10.1002/(SICI)1097-0266(199803)19:3<269::AID-SMJ950>3.0.CO;2-K
Davis, J.H.,Schoorman, F.D., & Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management Review, 22(1), 20-47.
Doeringer, P.,&Piore, M. (1971). Internal labor markets and manpower analysis.Lexington, MA: Heath.
Dyer, L.,& Reeves, T. (1995). Human resource strategies and firm performance: What do we know and where do we need to go? International Journal of Human Resource Management, 6(3), 656–670. doi: 10.1080/09585199500000041
Esty, K., Griffin, R., Schorr-Hirsh, M. (1995).Workplace diversity. A managers guide to solving problems and turning diversityinto a competitive advantage. Avon, MA: Adams Media Corporation.
Fitz-Enz, J.,& Davison, B. (2002). How to Measure Human Resources Management.McGraw-Hill, 2002. 3rd Edition
Furman, A. (2006). Mad, Sad & Bad Management: A Lexicon of Corporate Cock-ups, Coincidences and Confusions. Jaico Books. Mumbai.
Gerhart, B. A. (1990). Voluntary turnover and alternative job opportunities. Journal of Applied Psychology, 75: 467–476. doi: 10.1037/0021-9010.75.5.467
Getz, G.A.,& Sturdivant, F.D. (1989). The nuts and bolts of formulating differentiation strategy.Planning Review, 17(5), 4-9. doi: 10.1108/eb054266
Ghoshal, S.,& Moran, P. (1996). Bad for practice: A critique of the transaction cost theory. Academy of Management Review, 21(1): 13-47. doi: 10.5465/AMR.1996.9602161563
Glebbeek, A.C.,&Bax, E.H. (2004). Is high employee turnover really harmful? An empirical test using organization records. Academy of Management Journal, 47(2), 277–286. doi: 10.2307/20159578
Greguras, G.J.,&Diefendorff, J.M. (2009). Different fits satisfy different needs: Linking person environment fit to employee commitment and performance using self-determination theory. Journal of Applied Psychology, 94(2), 465–477. doi: 10.1037/a0014068
Grtind, C., Westergaard-Nielsen, N. 2008.Age structure of the workforce and firm performance.International Journal ofManpower 29(5): 410-422. doi: 10.1108/01437720810888553
Guthrie, J.P. (2001). High-involvement work practices, turnover, and productivity: Evidence from New Zealand. Academy of Management Journal, 44(1), 180–190. doi: 10.2307/3069345
Habbershon, T.G. & Williams, M.L. (1999). A resource based framework for assessing the strategic advantages of family firms. Family Business Review, 12(1), 1–25. doi: 10.1111/j.1741-6248.1999.00001.x
Habbershon, T.G., Williams, M., & MacMillan, I.C. (2003).A unified systems perspective of family firm performance.Journal of Business Venturing, 18(4), 451–465. doi: 10.1016/S0883-9026(03)00053-3
Harris, D., Maninez. J.I, &Ward,J.L. (1994). Is strategy different for the family-owned business?" Family Business Review,7(2),159-173. doi: 10.1111/j.1741-6248.1994.00159.x
Haynes, G.W.,& Danes, S.M. (1998). Revisiting the study of family business: Methodological challenges, dilemmas, and alternative approaches.Family Business Review,11(3), 239-252. doi: 10.1111/j.1741-6248.1998.00239.x
Hollander, B.S.,& Elman, N.A. (1988). Family-Owned Businesses: An Emerging Field of Inquiry.Family Business Review 1(2), 145-164. doi: 10.1111/j.1741-6248.1988.00145.x
Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38(3), 635–672. doi: 10.2307/256741
Klaas, B.S., McClendon, J., & Gainey, T.W. (2000).Managing HR in the small and medium enterprise: The impact of professional employer organizations. Entrepreneurship: Theory & Practice, 25(1), 107–124. doi: 10.1111/1540-8520.00031
Koys, D.J. (2001). The effects of employee satisfaction, organizational citizenship behavior, and turnover on organizational effectiveness: A unit-level, longitudinalstudy. Personnel Psychology, 54, 101–114. doi: 10.1111/j.1744-6570.2001.tb00087.x
Leedy P.D.,& Ormrod,J.E. (2001). Practical research planning and design, 9th ed.,Pearson Education, Upper Saddle River, NJ.
Ludwig, D. (2001). The Era of Management is Over. Ecosytems. 4(8), 758-764.
Jensen, M.,&Meckling, W. (1976). Theory of the firm: Managerial behaviour, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. doi: 10.2139/ssrn.94043
Martin, T.N., Price, J.L., & Mueller, C.W. (1981).Job performance and turnover.Journal of Applied Psychology, 66, 116–119.
Miller, N.J. (2000). Family microenterprises: Strategies for coping with overlapping family and business demands. Journal of Developmental Entrepreneurship,5(1).87-113.
Mitchell, R., Obeidat, S., & Bray, M. (2013). The effect of strategic human resource management on organizational performance: The mediating role of high-performance human resource practices. Human Resource Management, 52(6), 899-921. doi:10.1002/hrm.21587
McDougal, P.P. &Oviatt, B.M. (2003).Some fundamental issues in international entrepreneurship.
Moss, S.E., Valenzi, E.R.,&Taggart, W. (2003). Are You Hiding from Your Boss? The Development of a Taxonomy and Instrument to Assess the Feedback.Journal of Management, 29(4), 487-510. doi: 10.1016/S0149-2063_03_00022-9
Pattee, H.H. (1973). Hierarchy theory: The challenge of complex systems, Braziller, New York. pp. 1–156.
Poza, E.J.,& Daughtery, M.S. (2014). Family Business.South-Western Cengage Learning. Mason, OH. 4th Edition.
Redman, T.,& Snape, E. (2005). Unpacking commitment: Multiple loyalties and employee behavior. Journal of Management Studies, 42(2), 301–328. doi: 10.1111/j.1467-6486.2005.00498.x
Rice, M. &Habbershon, T.G. (2007). The place of entrepreneurship in entrepreneurship: The engine of growth. In M. Rice & T.G. Habbershon (Eds.), Entrepreneurship: The engine of growth (Praeger Perspectives Vol. 3). Westport, CT: Praeger Publishers.
Richer, S.F., Blanchard, C., & Vallerand, R.J. (2002).A motivational model of work turnover. Journal of Applied Social Psychology, 32(10), 2089–2113. doi: 10.1111/j.1559-1816.2002.tb02065.x
Sharma, P., Chrisman, J.F., & Chua,J.H. (1997).Strategic management of the family business: Past research and future challenges.Family Business Review.10(1), 1-35. doi: 10.1111/j.1741-6248.1997.00001.x
Shaw, J. D., Dineen, B. R., Fang, R., &Vellella, R. (2009). Employee-organization exchange relationships, HRM practices, and quit rates of good and poor performers. Academy of Management Journal,52(5), 1016–1033.doi: 10.5465/AMJ.2009.44635525
Shaw, J. D., Gupta, N., &Delery, J. E. (2005).Alternative conceptualizations of the relationship between voluntary turnover and organizational performance. Academy of Management Journal, 48, 50–68. doi: 10.2307/20159640
Schulze, W.S., Lubatkin, M.H., Dino, R.N., &Bucholtz, A.K. (2001). Agency relationships in family firms: Theory and evidence. Organization Science, 12(2), 99–116. doi: 10.1287/orsc.12.2.99.10114
Smith, N.R. &Miner, J.B. (1983). Type of entrepreneur, type of firm, and managerial motivation: Implications for organizational life cycle theory. Strategic Management Journal, 4(4), 325–340. doi: 10.1002/smj.4250040404
Srivastava, P.,&Bhatnagar, J. (2008). Talent acquisition due diligence leading to high employee engagement: case of Motorola India MDB. Industrial & Commercial Training, 40(5), 253-260. doi:10.1108/00197850810886496
Staw, B.M. (1980). The consequences of turnover.Journal of Occupational Behavior,1, 253–273.
Stevens, J. (2011). Competency cluster validation model: An empirical study of management.Journal of Information Systems Technology and Planning-JISTP, 4(5), 13-27.
Trevor, C.O.,& Nyberg, A.J. (2008).Keeping your headcount when all about you are losing theirs: Downsizing, voluntary turnover rates, and the moderating role of HR practices. Academy of Management Journal, 51(2), 259–276. doi: 10.5465/AMJ.2008.31767250
Tsui, A.S., Pearce, J.L., Porter, L.W., & Tripoli, A.M. (1997). Alternative approaches to the employee-organization relationship: Does investment in employees and managers pay off? Academy of Management Journal, 40(5), 1089–1121. doi: 10.2307/256928
Vandeberg, R.J., Richardson, H.A., & Eastman, L.J. (1999). The impact of high involvement work processes on organizational effectiveness: Asecond order latent variable approach. Group & Organization Management, 24(3), 300–339. doi: 10.1177/1059601199243004
Van G.J. (1974). Applied general systems theory, 2nd ed., Harper and Row, New York.
Wanous, J.P., Stumpf, S.A., &Bedrosian, H. (1979).Job survival of new employees and managers. Personnel Psychology, 32(4), 651–662. doi: 10.1111/j.1744-6570.1979.tb02338.x
Way, S. (2002). High performance work systems and intermediate indicators of firm performance within the U.S. small business sector. Journal of Management, 28(6), 765–785. doi: 10.1177/014920630202800604
Wilson, N.,& Peel, M.J. (1991). The impact on absenteeism and quits of profit-sharing and other forms of employee participation. Industrial and Labor Relations Review, 44(3), 454–468. doi: 10.1177/001979399104400304
DOI: http://dx.doi.org/10.1453/jest.v2i3.436
Refbacks
- There are currently no refbacks.
Journal of Economic and Social Thought - J. Econ. Soc. Thoug. - JEST - www.kspjournals.org
ISSN: 2149-0422
Editor: [email protected] Secretarial: [email protected] Istanbul - Turkey.
Copyright © KSP Library