History of Al-Hassan Group of Companies - Case Study Example

HISTOTRY OF AL-HASSAN GROUP OF COMPANIES By Name Class Instructor School name City State Date Abstract The Al-Hassan Group of Companies has evolved through adversities to become a leading firm with close ties to the Sultanate within the Oman Empire. The firm operates mainly within Oman and in UAE, with its main trade tool being petroleum products. The conglomerate believes in provision of quality services to clients in an attempt to maintain its ethical appeal. The vision of the firm is to seamlessly operate in multicultural and multidisciplinary outfits, with a commitment to uphold fair-mindedness and truthfulness. Evidently, the firm has constructed a positive relation with its employee base, implementing strategic disciplinary procedures to foster institutional stability. Evidently, the group actively employs warnings, employee transfers, contract terminations and deportation of staff as some of the disciplinary measures. In many cases though, the group embraces dialogue and counseling to correct stray employees. Key Words: Al-Hassan Group, Dialogue, Warnings, Employee transfers, Contract termination, Deportation History of Al-Hassan Group of Companies Introduction Organizational discipline has evolved to be an integral component of business entities. Through well stipulated disciplinary procedures, human resource managers are able to contain employee misconduct which could easily derail seamless operation of the firm. By definition, misconduct is an improper behavior that contravenes organization’s codes of ethics. Further, the managers can employ disciplinary procedures as investigative tools that can be used to prompt improved employee performance within the organization. Through such procedures, the resource manager is able to instill discipline, efficiency and professionalism in production process. Also, the procedures can prove central in promoting cohesion among the employees. Above all, properly designed procedures are applied by the managers to promote fair-mindedness and hence safety within the firm. In modern organizations, a variety of disciplinary procedures are applied in different firms. The severity of the techniques employed in specific cases is directly related to the level of seriousness of the disciplinary case. Some of the techniques commonly applied include dialogue and counseling, verbal and written warnings, suspensions, contractual terminations and deportations among others. In implementing the procedures, however, the human resource managers are often faced with various challenges. For instance, instances of impartiality and rivalry are likely to affect administration of disciplinary procedures. Moreover, organizational politics and lack of support from relevant authorities remain a great obstacle towards disciplinary justice. The Al-Hassan Group of Companies has continued to flourish against all adversities within the Oman economic setup. Currently, the Al-Hassan Group has eleven companies operating within the Oman and the UAE, mainly in the fields of contracting, trading and manufacturing (Al-Hassan Group of Companies, 2015). This has seen the group successfully integrate personnel of different ethnic, racial and political backgrounds in its operations. Al-Hassan Group of Companies has been successful in enacting and implementing strategic disciplinary policies and procedures leading to seamless operations. The company has actively involved dialogue, counseling, warnings, suspensions, contract termination and employee deportations as disciplinary measures (Al-Hassan Group of Companies, 2015). Disciplinary Measures The conglomerate has well established codes of conduct which all the employees are expected to observe. Similarly, the firm has structured disciplinary provisions aimed at governing employee behaviors. While many employees are conversant with the disciplinary codes, a few cases involving lack of awareness have led to contravention of ethical codes. This, consequently, calls for implementation of corrective measures (Al-Hassan Group, 2015). This section provides an in-depth analysis and review of these disciplinary techniques. Dialogue and Counselling As an entity, Al-Hassan Group of Companies promoting existence of a professional working relationship between it and its employees. As such, the company believes in dialogue as an ideal measure to foster a good working relationship and content. Primarily, the firm understands that signing of ethical codes hardly implies that the employees are conversant with the provisions and expectations instilled within such ethical codes. As such, dialogue provides the best platform for the management to enlighten the employees on the provisions of the codes of conduct which they may not be fully conversant with. In some cases, the firm notes that indiscipline may result from factors beyond the control of the employees (Merrick et al., 2012). For instance, the employees may be subject to manipulation from external sources. If such manipulation is not much and the firm believes the employee can be reverted back to their productive states through strategic interventions, the top management, and the human resource section may resort to counseling. In many cases, this measure is put in place in attempts to lure influential persons within the firm to desist from an impending decision to quit the firm. In fact, the firm notes that possible departures of such personnel may negatively affect business operations of the conglomerate, and may consequently paint a negative image of the Oman business setup. At lower levels, the disciplinary counseling is administered by supervisors on employees. These low-end counseling often concentrate on specific workplace incidences with potential of disintegrating workplace harmony between the workers. In addition, counseling may be in a bid to kill a negative image that an influential employee is spreading to other employees. As an example, an influential employee may promote a culture of laxity and laziness, a development that may prove costly to business success of the giant group of companies. Notably, such counseling sessions are often carried out in private, providing the employee with the platform to air their side of the story, and to explain the causes of their queer behaviors. In general, counseling between supervisors and employees in Al-Hassan Group of Companies has been instrumental in construction of socioeconomically and politically inclusive workplace environments. Within the Al-Hassan Group of Companies, counseling is done through a concise procedure. This technique involves two important phases. The first phase, which is the most prevalent within the firm, is informal counseling. This involves informal discussion between the supervisors and the employees. It involves verbal communication which results into exchange of ideological principles and beliefs with the aim that the employee will be more committed to their work. In many instances within the firm, this initial stage is always successful in achieving its goals (Rutgers University Human Resource, 2014). In isolated cases, however, the employees remain defiant prompting implementation of the second phase of counseling, written counseling. This phase involves a planned meeting between the supervisor and the employee, with the issues discussed being noted down, and a consensus finally reached. Such consensus defines the frameworks to be followed by the parties to the counseling sessions in building a mutualistic working relationship moving forward. Within the Al-Hassan Group of Companies, conditions hardly worsen beyond this phase of corrective measure. Rare situations have, nevertheless, seen defiant employees contravene the written agreements of the counseling session, calling for stricter corrective measures. Warnings Al-Hassan Group implements a progressive disciplinary procedure. This incorporates severity of the offense and the circumstances under which the breach was committed by the employee. Following failed sessions of counseling, both written and verbal, the employer may resort to warnings. Like in the case of counseling, the preliminary phases of warning involve involves verbal warnings. Such verbal warnings are applicable in minor offenses, are hardly accompanied by other formal disciplinary processes. When the employee fails to heed to the verbal warning, it progresses to written warning. According to the provisions within the Giant Oman firm, verbal warnings are followed by written warnings which may be accompanied by summons to appear before the disciplinary committee. Such written warnings may also be given out upon repetition of offenses for which verbal warnings or prior written warnings were given out. In many cases, the firm tolerates the employee defiance by issuing a third warning which is also in the written form (The South African Labor Guide, 2014). Notably, written warnings must incorporate the parties, mainly the supervisor issuing the warning and the employee to whom the warning is directed. Further, the dates of the warning and other preceding warnings must be evident. The warning must define the validity period during which a change is expected of the employee, and the expected repercussions should the employee fail to adopt the expected change. Employee Suspension and Pay-cuts Another strategy frequently applied in Al-Hassan Group involves suspension of the employee without pay. This measure is enacted when previous attempts have failed. It is implemented in relatively serious offenses, but may also be instituted when curbing progress of minor offenses (Gale, 2006). In addition, this technique is commonly used when the firm would like to hold onto a given employee who is central to the production process within the firm, and hence the firm would not want to lose them. To implement suspension, the supervisor writes a request letter to the relevant authorities requesting for authorization of the process. In such communication, the supervisor is required to specify the factors that necessitate the suspension, and whether there are no alternative modes of dealing with the issue. Within the firm, a notice of suspension is given to the employee. The employee then signs the notice of suspension to confirm their agreement to the decision. Moreover, the notice must specify the period and the duration of the suspension (Gale, 2006). In less severe instances though, pay-cuts are preferred by the firm to suspensions. Through the implementation of pay-cuts, the employee continues to work thereby enhancing productivity of the firm. However, implementation of the pay-cuts must be done following a written notice on the same to the employee. Such notice is undertaken by the firm to reduce possible lawsuits and wage claims. Employee Transfers and Probations Al-Hassan group is a large corporation with many branches and business operations. In some cases, the multi-ethnic and multicultural employees do not get along well. This necessitates action by the top management and the supervisors (UK Government, 2014). For instance, the supervisors identify the employee causing the unrest. If the employee is unable to co-exist with their colleagues, they are transferred to affiliated branches of the firm. Alternatively, an employee may submit a transfer request if they feel that their productivity in a current branch is affected by their relations with other employees hence affecting their discipline standards. Similarly, transfers may be internal within the firm. Such internal transfers may entail temporary demotions. This is implemented when a top manager is performing decimally thereby hampering the progress of the firm. In some cases, the employees may be subjected to probation. Following the period of probation, which lasts up to six months, it is expected that the employee will have rectified their wrongs. If the employee makes negligible progress during the probation period, they stand high risk of being laid off. Contract Terminations Termination of contracts of the affected employees is often the last resort as entailed in the firm’s disciplinary structure. Notably, the firm operates in a sector where competition is a day-to-day experience. In such setups, it is integral to formulate workable strategies that can propel further growth of the firm. In addition, secrecy and privacy is a chief requirement to operate in such competitive markets. However, indiscipline cases may result in which employees of the firm leak privacy details of the firm to other competitor firms. This may amount to gross misconduct, calling for contract termination without prior communication notice to the employee (UK Government, 2014). Other cases that may be considered as gross misconduct in the Al-Hassan Group include theft, corruption and embezzlement of funds. Also, promotion of violence and cultural profiling may result to unrest within the workforce. This may lead to lower performance within the production sector hence lower profitability within the firm (The South African Labor Guide, 2014). Such developments may culminate into termination of the contract. On the other hand, the employee at fault may opt to take the bold move to resign. Nevertheless, Al-Hassan Group believes in fair dismissal following procedural implementation of due process. The firm communicates directly to employees through warning letters which when not heeded to lead to eventual dismissal. Such dismissals are accompanied with letter of dismissal explaining the reasons for the decision. Employee Deportations Since the firm operates in a multi- national environment with multi-cultural persons, it hires individuals from different nations. Such international employees may, however, undermine performance of the firm through unfair information sharing and promotion of competitor brands. Due to such misconduct, the firm is at liberty to terminate their contracts. Owing to the close ties between the Al-Hassan Group and the leadership of Oman, the firm may influence political decisions that may result into deportation of the sacked employees. Through such deportation, the firm is able to prevent further influence of the deported employee to the remaining workforce. Also, the deportation ensures that the former employee is denied a chance to work on a firm which is a direct competitor to Al-Hassan Group. Such preventive measure is key in promoting stability and dominance of the firm in the region. Observations and Recommendations Evidently, the firm has encountered a wide array of challenges in attempts to foster organizational discipline. Firstly, the firm works with diverse employees with different sociocultural and political orientations. As a result, it is quite difficult to harmonize their antagonistic beliefs. Further, the firm is established in a religiously volatile environment. This hampers religious integration. Above all, conflicting interests and competitor firm’s attempts to infiltrate into operational processes of the conglomerate has been a major challenge. To deal with these cases, it is important that Al-Hassan group remains apolitical. Also, the firm should attempt to shun strong religious basis which would deter effective productivity of Christian employees. Above all, the firm should promote benchmarking and consultative forums with the employee body to instill employee grievances and aspirations in management process. Conclusion In summary, the firm has strived to maintain its status as a regional leader within its business environment, generating great revenue, creating employment and promoting the GDP growth of the Sultanate of Oman. However, the research finds that the firm has experienced some instances of employee indiscipline. Relatively, the firm has strived to promote fairness in its procedural responses t indiscipline cases. Basically, the study finds that Al-Hassan group believes in dialogue and counseling as a corrective measure. In severe cases of indiscipline, however, the group implements stricter policies. However, implementation of stricter policies within the firm is based on substantive fairness. This dictates that the specific codes broken by the employee is outlined. The company group believes in implementing stricter disciplinary provisions upon persistence of defiance from the given employee. To this end, it is evident that Al-Hassan group focuses on procedural fairness, a setup which involves counseling sessions followed by warnings, pay cuts and eventual termination of contract. References Al-Hassan Group of Companies. 2015. About us. Al-Hassan Group of Companies. [Online] Available at: http://www.al-hassan.com/aboutus.html [Accessed March 26th 2015] Al-Hassan Group. 2015. Our approach. Al-Hassan Group. [Online] Available at: http://alhassan-group.com/new/main/our-approach/ [Accessed March 26th 2015] Gale, T. 2006. Altered duties, suspension constitute retaliation. Journal of Employee Assistance. [Print] Merrick, E., Vartanian, J., Horgan, C., & McCann, B. 2012. Revisiting employee assistance programs and substance use problems in workplace: key issues and a research agenda. Psychiatr Serv. Author Manuscript. [Print] Rutgers University Human Resource. 2014. Staff employee disciplinary action: when and how to take it. Rutgers University. [Online] Available: http://uhr.rutgers.edu/uhr-units-offices/office-labor-relations/employee-discipline-information-supervisors/staff-employee [Accessed March 26th 2015] The South African Labor Guide. 2015. Warnings. The South African Labor Guide. [Online] Available at: http://www.labourguide.co.za/warnings [Accessed March 26th 2015] UK Government. 2014. Disciplinary procedures and actions against you at work. Gov.uk. [Online] Available at: https://www.gov.uk/disciplinary-procedures-and-action-at-work/disciplinary-hearings [Accessed March 26th 2015] Read More