Analysis of CoalBlack
Introduction
CoalBlack is a large coal mining company that utilizes open cut technology to carry out its activities in the fantastic valley in Australia. Given that this is the largest employer in the entire region, there is an implication that this company contributes greatly towards the economic sustainability of the surrounding area. The company though makes good profit out of the activities carried out in the mine; there is need for re-evaluation of some of the activities to avoid chances of losing its competitive advantage. This paper carried out an analysis of the company in terms of how most of its activities are carried out to support the local community as well as maintain profitability within the company (Zaccaro & Klimoski, 2001). It will therefore consider some of the problems experienced within the company’s operational activities and offer recommendations on how to improve the performance of the organization.
Risk Management
For the survival of any given organization, there is always that need to look into activities that reduce the risks posed to the immediate population following its operations in the area (Zaccaro & Klimoski, 2001). Risk management in most cases takes into consideration the dangers posed to the environment as a result of the activities carried out so that better ways forward are reached in the maintenance of a healthy environment. Every company should make sure that activities that occur within the company do not for instance pollute the environment or temper with natural resources within its area of operation.
CoalBlack Mining Company has failed in a number of ways when it comes to risk management. This has to be solved so that there is a safe environment within which the company operates. From the environmental records of the corporation, it has been pointed out that the company does not take into consideration environmental issues as it mines in the valley of Australia. Most of the waters ways of the local community have been contaminated by the run-offs from the mines. This has gone as far as killing some of the fauna in the region particularly those that are endangered like the Spotted Hopping Bandicoot. This has been done through the encroachment of the mine into the animal’s natural habitat. This forms one of the most imperative areas that have resulted into conflicts between the local community and the company’s management personnel (Rasche, 2007). The community though feels on one side that there is social responsibility from the company through provision of employment opportunities, the company has failed in another section which is pollution and destruction of the natural habitats for wild animals.
It is therefore important that the mining activities are checked so that thee are no more deaths of the animals which form a natural heritage for the local community (Hill & Jones, 2007). This will improve the relationship that exists between the company and the surrounding community. Contaminated water from the mines should then be treated prior to the release into the natural water ways of the community so that there is totally no pollution being experienced as a result of the activities of the company. The society should feel that concern by the company in improving the environmental condition through feeling old mines and reclaiming them so that habitats for the animals are maintained.
Leadership Style
In any given successful organization, leadership is a vital tool towards the performance of employees. The leadership style employed in an organization determines the decision making process of an organization and the ultimate performance of a company. There are a number of organizational leadership styles that are used in the contemporary organizational structure. It is however important that the management of any organization like CoalBlack mining company decide on a better way of leadership so that employees are incorporated in the decision making process particularly in matters affecting them (Rasche, 2007).
A close examination of the CoalBlack’s leadership technique, it is noted that the CEO utilizes the authoritarian type of leadership. This has a negative impact on the well being of the company. According, to this style of leadership, whatever that the CEO decided is what is carried out. In this case, there is little or no room for the attendance to the issues affecting employees and this reduces the morale of workers. It is therefore important that the company embraces the participative or democratic leadership style in which all employees in the organization are allowed to take part in decision making process for the better performance of the company (Hill & Jones, 2009). An important part of this style of leadership is the final decision being reached by the leader which makes the employees to develop confidence in their leaders.
Employer Motivation
Employee motivation is one of the pillars that increase employee performance within an organization. Motivation for employees varies from individual to individual. However, there are common grounds upon which all employees can be motivated for their work done. It is unfortunate that the CoalBlack Mining Company has no program put in place for employees’ motivation. This puts the company at the risk of losing its experienced workforce as they seek to satisfy themselves (Hill & Jones, 2007). Motivation for employees is good in encouraging them to work even hard and therefore improve productivity of the company. Some of the motivation techniques that this company should embrace include rewards that follow better performance of workers so that they always seek to perform better to be rewarded. The company should also introduce pension schemes that will maintain the loyalty of workers to the company. Compensation are also vital in cases of accidents that occur at the workplace so that employees get committed to their work.
Social and Environmental Issues
In the case of social and environmental issues, it is imperative for any organization to comply with the surrounding laws and regulations within its region of operation. This may include the regulations of mining activities for the case of CoalBlack Company which adhere to the environmental issues like pollution and conservation of the natural habitats. At the moment these issues are attended to, the company will minimize cases of conflicting with the local community. The company should go through the Australian laws concerning mining activities and how the society can be served in more ethical ways (Hill & Jones, 2009).
Organizational Ethics and Culture
Organizational ethics and culture involves those issues that the company holds as its strengths as well as the issues that should protect the employees at their workplace (Rasche, 2007). Such issues should include listening to the workers’ grievances on matters of safety at work so that better solutions are sought for better performance and existence of a mutual relationship between the management and the workers. This however has not been adhered to by the leadership structure at the CoalBlack Company. It has a negative impact on the way employees respond to their work and hence lowers the profitability of the company. Leaders should understand that not all employees are the same and they therefore hold diverse issues at the place of work. The company has to work towards amalgamation of these differences for a better understanding to be fostered at the workplace.
Management of Conflict
In the business environment, it is inevitable to lack conflicts since cultures differ from place to place (Root & Visudtibhan, 1992). Issues that are held so important in one region may not be imperative in a different region. These conflicts have to be tactfully handled so that operations of the company are not hindered with. In this case, the conflicting issues are between the company and the local community on the sustainability of the natural resources. The views that the local community holds concerning the environment are different from what the company does. It is therefore important that good leadership seeks to solve such issues in a harmonized way instead of causing more conflicts.
Resistance to Change
Changes usually happen in an organization to bring about better performance and profitability of an organization (Tyndall et al, 1990). It is always imperative that individual workers in an organization are encouraged to embrace positive changes so that the company runs smoothly. In cases of embracing positive change, incentives may be introduced as well as a better explanation for the need of positive change within the organizational structure. Change is meant to establish competition within any organization and therefore incentives are used to overcome resistance that might emanate from both the community around as well as employees within an organization.
Exercise of Power and Politics and Implication for Leadership Style
CoalBlack Company has to put in place power management programs so that good leadership is fostered. This is one of the areas that are important for the Human Resource Management Department. Power that has to be used within an organization should focus on employment of the expert power so that good qualities of the leaders are encouraged for the well performance of the company (Root & Visudtibhan, 1992). This usually has to involve goal identification of the company so that activities are carried out from a more open ground than exercising blind operations. Considering the conflicts that are being faced by the CoalBlack Company, power and politics should be checked so that an understanding is realized within the company.
Executive Training and Succession
Executive training programs are used in companies to update those in leadership positions about the changes in the technological advancement. This is meant to better the performance of the company in terms of production and safety. In cases of new leaders taking over leadership positions in the company, it is important that training is done to them so that they have a full understanding of the operations carried out within the company. This will enable feedback acquisition particularly from employees so that conflicts are minimized. Looking at the company under study, there is the use of primitive methods of mining which has resulted into contamination of waterways of the local community (Silverthorne, 2005). This is the main conflict training should be incorporated within the company to update the leaders about more current methods of coal mining. Technology when embraced could help in the reduction of cases of pollution and therefore good relationship between the company and the local community.
Conclusion
Every company seeks to maintain a good working environment both for the employees and the local community for the smooth running of the company. This paper has looked at the case study of CoalBlack Mining Company in Australia which is faced with a number of flaws concerning its operation as a result of poor leadership and organizational structure. As noted, it is imperative for companies to check all possible risks, provide good leadership techniques to the employees and at the same time strive to accomplish social responsibility.
References:
Zaccaro, S. & Klimoski, R. (2001). The nature of organizational leadership: understanding the performance imperatives confronting today’s leaders. New York: John Wiley and Sons.
Silverthorne, C. (2005). Organizational psychology in cross-cultural perspective. Chicago: NYU Press.
Rasche, A. (2007). The Paradoxical Foundation of Strategic Management. California: Springer.
Root, F. & Visudtibhan, K. (1992). International strategic management: challenges and opportunities. New York: Taylor & Francis.
Tyndall, G., et al. (1990). Strategic planning and management guidelines for transportation agencies. Chicago: Transportation Research Board.
Hill, C. & Jones, G. (2009). Strategic Management Theory: An Integrated Approach. New York: Cengage Learning.
Hill, C. & Jones, G. (2007). Strategic management: an integrated approach. New York: Cengage Learning.
