Ancol Corp Case Study

Group 2 Case study

Question 1

Time clock removal has impacted the effectiveness of the organization. According to the open systems perspective which means the organizations depends on the external environment for resources that in return affect that environment through their output and consists of internal subsystems that transforms inputs into outputs.

Hence in this situation Ancol Corp tried to influence the environment by removing the time clock which results in an increase of morale among the employees as they felt trusted. However that decision backfired as certain quarter of the employees took advantage of the freedom given by coming in late to work, take a longer break hours or going back early. This resulted unfairness among employees who uses the trust properly. When the workers tend to not follow the working hours of the organization, this leads to low productivity in the organization especially the production department. If the organization’s income is fully depending on products produced and delivered, hence it will affect the income and reputation of the organization. This is due to the failure meeting the deadlines and delivery time which was dealt with the clients. This causes lost of trust from clients towards the organization. In order to rectify the issue Ancol added additional supervisor position and reduced the number of employees assigned to each supervisor. This rectification has decreased the efficiency of the organization as more labor is required to produce more goods.

Besides that, by removing time clock, working hours are not tracked. This has directly affected another subsystem which is the payroll department. The department will not know at what time the employees’ clock in clock out. Therefore, there will be gap in timesheet. Indirectly company will be paying more or less in terms of salary.

To conclude, Ancol corp as an organization has failed to adapt with the changes made with the environment in this situation which happens to be the removal of the time clock.  When the internal environment (operation and production) is no longer in a discipline manner, the external environment (stakeholders/public) will able to observe and detect it. The external environment will slowly lost trust towards the organization, and it will directly impact the income generation and reputation of the organization. Hence, the organization will undergo crisis both internally and externally. Therefore several months later they reintroduced the time clock.

Question 2

In order to minimize the risk of such problems occurring again in the future, Ancol corp should make some changes as an organization. One of them is as an effective organization, Ancol corp should closely and continuously monitor the environment after the removal of time clock which is the attendance of the employees. By doing so, Ancol Corp can study how are the employees are adapting to the changes and they can reconfigure their internal subsystems to align more closely with the changes among the employees work hours. For example, the supervisors should make sure all the employees assigned to him are reporting to duty everyday on time and they have to make sure they are not taking advantage of the freedom given.