How might these problems be resolved?
All cases are different but I think that the conflicting stakeholders would come to a compromise, but if this does not work they may have a vote. If the conflict is between managers and employees then the trade unions may have to get involved to settle the conflict.
In the example given above, 300 million debts, managers considered laying off staff to cut costs but employees, through unions, negotiated no redundancies but other options.
Organisation structure of Alstom
Alstom is split into three functional areas which are all integrated so they can work together to be a successful business. These areas are:
- Original equipment business
- Customer service business
- Operations business
How does the organisational structure of Alstom affect communication between employees?
The organisational structure is designed so there is not a problem with communication. Mostly the employees you need to contact are in the same part of the business, for example customers service business. If you need to talk to someone not from your department you can do it in a number of ways; these include e-mail and phone. I think that this structure is ideal for a big business for Alstom, this structure lets an employee know how to contact another employee. I do not think that this structure is ideal for emergencies because you can not contact some one immediately.
Three different employees working in the same functional area.
The three employees I have studied to show what the different roles are in the same functional area are:
Control engineer
The role of this job includes designing software for plc-based software and using specifications to produce software for gas turbines. The working arrangement for this job is the employee would be in an office working on a computer, the person would work from 10.00 – 17.00. This job requires a degree in control systems; electrical or integrated engineering and this person would need a minimum of two years experience in Alstom to do this job efficiently.
Engineering apprentice
This person would join Alstom without any experience and gradually build his or her skills. The apprentice will first be trained at foundation level off the job and then will be introduced to Alstom to get on-the-job experience. To be able to apply for this job you need to have 4 GCSEs grade C or above, these have to include Maths English and Science. This job does not have any great flexibility in terms of hours or holidays
Mechanical and electrical applications engineers
This person deals more with customers more than the other two jobs. Their job description includes, talking with customers on the technical aspects of the turbines and reviewing and approving supplier designs. The employee has flexible working hours, one week working four days but next working seven. This is only capable for Lincoln engineers, but they must be in work between 10-12 and 2-4.
The three jobs are very different. The control engineer mostly works a fixed time and is in an office, whereas a mechanical and electrical applications engineer is mostly working flexible hours and would be in and out of the office all day meeting new customers. An engineering apprentice has fixed working times but may also have to work outside of them to complete all tasks set.
All the working arrangements are affective in their own working environment, but they could be improved. The working arrangement of the control engineer could leave him/her unmotivated. An engineering apprentice is challenging but is also very hard. Mechanical and electrical application engineer is a very challenging job and there is a new challenge every day so that they will most probably be more motivated. There would be different amounts of pay and other rewards in each type of job.
The communication channels that exist between the three employees include
Meeting on a Monday morning for an update meeting where they are told of any new jobs and any information affecting Alstom as a whole business. The apprentice does not speak directly to the mechanical engineer, but has a supervisor who informs him of issues to do with his job. The mechanical engineer links with the graduate trainee though as it is part of his job to help mentor him. The graduate trainee has responsibility over the apprentice, but they do work quite closely together for part of the time. Also they can e-mail each other if very important. This is a formal way of communicating with your co-workers, an informal way could be to give notes to each other, but this can only really be done in the same department.
Are their working arrangements effective?
I think the organisation structure allows the employees to communicate efficiently but sometimes it may take a long time to respond. The organisational structure is only efficient if you are working in the same department it is difficult to communicate with employees in other departments. This is because all three departments are very separate but there is a weekly meeting where all employees can b contacted.
Flexible working hours and how they benefit the business.
Flexible working hours for example, annualised hours and flexitime are very beneficial for a business but it only in the right areas. Flexitime is good for a mechanical engineer but not for apprentices they need to be more fixed. Job sharing has recently started at Alstom, Lincoln. Job sharing of women retirees, this is not widely practised yet.
Flexible work forces
Businesses more commonly employ part time staff and temporary employees. They have also used self-employed workers, who hire out their skills to firms but they are still their own bosses. Alstom have made good use of more flexible contracts of employment, in some cases with the annualised hours included instead of hours per week. There are many advantages of flexible workforces such as they are cheaper and can assist the business in coping with sudden changes in sales. Also firms can reduce training costs by employing other businesses to do a particular job, or by hiring self-employed workers who already have necessary up to date skills.
What are the main laws that protect employees at work?
There are many laws that protect employees at work but the main laws are:
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National minimum wage Act, 1998 this law is to protect employees and ensure that everyone gets a fair wage. This act states,
- There is a general minimum wage of £3.60.
- If employees are paid by amount they produce they must receive the minimum wage.
- All part time and temporary staff must be paid the minimum wage and there is a minimum wage for 18- 21 year olds, £3.00.
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Equal pay Act, 1970 this act was put in place to ensure that businesses treat all their workers with the same respect and give them the same pay and working conditions.
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Sex discrimination Acts, 1975 and 1986 these Acts were put in place to ensure that no one was being discriminated. A business can not advertise jobs for only men or women and they shouldn’t treat men or women differently when both going for promotion. It is also illegal to discriminate against people who are married or unmarried.
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Race relations Act, 1976 this act now makes it illegal for a business to discriminate against a person for its ethnic background or colour, for example they cannot refuse a job to someone because they originate from Africa.
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Disability Act, 1995 since 1995 the government has made it illegal for an employer to refuse someone a job because of their disability. Employers might be expected to build ramps to allow wheelchair access and to adapt equipment so that disabled people can use it.
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Data protection Act, 1998 this protects employees who have personal information about them held on a computer. Businesses must now make sure that the data they possess is secure, up to date and accurate. Under the Act, employees have a right to see their personal files, and personal details cannot be passes on to other businesses without your consent.
Other employment laws
Since 1980, many laws have been passed to cover the relationship between employer and employees, but there has also been laws passed about heath and safety and trade unions.
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Employment Acts, 1980 and 1982. These Acts reduced the power of trade unions in the workplace. They allowed employees to refuse to negotiate with unions and striking employees were allowed to picket only their own place of work.
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The trade union Act, 1984 this Act required trade unions to allow its members at the workplace to vote by secret ballot before the union could take industrial action.
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Employment Act, 1990 under this law closed shops, workplaces where employees had to belong to a trade union, were made illegal. Employers had the right to sack employees who took strike action without first conducting a secret ballot
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Trade union reform and employment rights Act, 1993. This act made sure that unions gave employers a week’s notice for industrial action. The idea was to provide a “cooling off” period, which was, intended to make industrial action less likely.
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Working-time regulations, 1998 this law made it illegal for an employer to force employees to work more than an average of 48 hours a week. It also limits hours that can be worked during shifts.
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Employment relations Act, 1998 this act gave up to three months parental leave to both mothers and fathers, and increased compensation paid to employees who have been unfairly treated. The act also required the employer to recognise a trade union that is support by more than 50% of the work force. Being recognised gives the union the legal right to negotiate pay and working conditions with the employer.
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Employment Act, 2002 this act gives extra rights for flexible working arrangements for employees.
Health and safety at Alstom.
Health and safety laws are there to protect the employee. The employer has to ensure they are not putting their workforce in danger. The laws help to prevent accidents happening at the workplace.
Some possible health and safety risks at Alstom are:
- Employees could get injured by shards of metal from machinery.
- It may be dangerous to transport the turbine, as they are very big and heavy.
- They could get trapped in machinery or turbine.
- They could damage their skin if they are using dangerous chemicals.
How do Alstom help to prevent accidents occurring?
Alstom help to prevent the above things happening by:
- Installing and maintaining safety equipment.
- Supply safety clothing.
- Provide protection against dangerous substances.
- Fit guards in dangerous machinery.
- Giving employees sufficient breaks during the day.
- Maintaining workplace conditions, including temperature.
- Displaying a detailed safety policy.
Examples of health and safety measures Alstom have undertook, where there is hot oil there are danger signs on the wall and all employees on the 'shop floor' have to wear rubber soled shoes to prevent slipping and also against any electric shocks.
Disciplinary issues are settled with initial discussions between supervisors and the employee, then verbal warning which is noted in the workers file and signed by him and the supervisor. Then formal written warning which again is signed and indicates the problem what change in behaviour is expected and by what date. Then there is a final written warning and finally dismissal. Usually the warnings do include the offer of necessary training and support if the problem is one relating to competency.
Employers can be prosecuted if they do not do the above things to a satisfactory level. Alstom also put all their employees on a basic health and safety course. Alstom do not have many accidents within the workplace, which I think proves that they are protecting their workforce well.
Disciplinary issues
Disciplinary issues are settled with initial discussions between supervisors and the employee, then verbal warning which is noted in the workers file and signed by him and the supervisor. Then formal written warning which again is signed and indicates the problem what change in behaviour is expected and by what date. Then there is a final written warning and finally dismissal. Usually the warnings do include the offer of necessary training and support if the problem is one relating to competency. Amcus is the main union.
Grievance procedures are also in place this is where a worker feels they are being mistreated or harassed and there is policy which is stated in the workers handbook.
Methods for settling a dispute.
Disputes can occur for many different reasons. There may be disputes about pay or about mistreatment. There are also different ways to settle disagreements. The two are put into two categories, internal and external.
Businesses try to settle all disagreement internally. They try to talk to all parties involved, for example the employer and the trade union representing the employee. If they do not get settle they will be settled externally by an industrial tribunal.
Industrial tribunals
Industrial tribunal is the main form of sorting a claim for discrimination or any other unfair treatment. These are informal courts, set up to hear employees’ complaints about their employers. Each tribunal consists of three people:
- A chairperson, who has legal training.
- Someone who supports and represents the employer.
- Someone who supports and represents the employee.
If a tribunal decides in favour of the employees they may receive compensation.
Who are the official employee groups and what is the purpose of them?
The main official employee groups are the trade unions. Their purpose is to argue the dispute for the employee. The main trade union at Alstom is called AMICUS; they talk to managers on behalf of employees and will try to come to an agreeable solution to the dispute. The trade union may call upon ACAS, a mediator, who will try to come to a solution before industrial action is taken.
Health and safety issues.
Mrs McMalon said the HR department had worked together with employees to ensure Health and safety and recent employment act had been implemented. Some workers gave ideas how best to improve health and safety. Now a video is used for new workers and all visitors to Alstom, which clearly explains the dangers, and how to avoid them. No comment was made on the new employment act except is would be costly to implement
What is ACAS?
ACAS was set up in 1975 with the aim of preventing industrial action by settling industrial disputes. ACAS means, Advisory, Conciliation and Arbitration Service.
Recruitment and training.
If Alstom is to succeed, it is very important that Alstom ensure that the employees have the right skills and attitudes. Recruiting the right person is very important. If someone is chosen and it turns out he or she is unsuitable Alstom may suffer.
The average cost of recruiting is approximately £2000 per employee, so that is an important reason for making sure the procedures are good. On the first stage the HR department does the analysis of skills and they look at the current skills, qualifications and experience of all the staff using a database of all employees. This is then compared with a list of all the required skills needed for the current projects, and if any skill gaps emerge from this comparison, they draw up a job description to fit the needs. For instance, last year a highly specialised systems engineer position was needed to be filled and there were only three people in the country that could do the job. One already worked for Alstom and could not be released to the Lincoln site, as he was needed in Rugby. One worked in Scotland and the other for Rolls Royce and he was headhunted to fill the vacancy. The ten procedures are listed below.
What procedures do Alstom undertake before recruiting employees?
Before Alstom starts a recruiting campaign it follows this procedure:
- Carry out a job analysis.
- Draw up a job description.
- Prepare a person specification.
- Publish a job advertisement.
- Send application forms.
- Match data on application forms to job specification.
- Shortlist.
- Interview and match person and specification.
- Select a candidate.
- Appoint the chosen candidate.
It is important for Alstom to have a set procedure for recruitment because the business could suffer otherwise. If they didn’t have a set procedure they could pick the wrong person for the job and Alstom may not have a job vacancy to advertise for. They need each single procedure to ensure the have the right person for the job.
Application letter for a job.
Look on a separate sheet for my application letter to Alstom
Training
Alstom have their own training school, which is used for the 100 apprentices they take on each year. Future training would depend upon your progress and the result of six-monthly appraisals, which highlight your strengths, weaknesses and desires for advancement. If the need would help Alstom the training would be paid for.
Training I would receive if I was a successful applicant.
If I was appointed I would first receive induction training, this would tell me simple information that I would need including:
- What my job involves.
- Where the equipment is that I require for me to do my job.
- Where the toilets and the canteen is.
- What the fire procedure is.
I would also receive basic health and safety training. Because I am applying as an apprentice I would also receive training in my chosen field.
The purpose of induction training is to make the employee as efficient as possible as soon as possible. The purpose of basic health and safety training is to ensure I do not endanger any one else or myself in the workplace.
How does my application relate to the job description?
My application fits the job description; I will have 5 GCSEs at grade C or above. I am not old enough to apply properly for this job but when I have completed my GCSE course I will be. I think I would be quite successful as I fit all the specifications and Alstom are always looking to train engineers to fill the job placements for people when they retire.
What training would I receive from Alstom in the future?
If I got the job of an apprentice I would be trained to be an engineer, but I may also get training to work SAP or to use video conferencing. I may also get training for a managerial position. I would only get the training if I needed it. If I was going to work on computers I may need to know how to use SAP.
Alstom have their own training school, which is used for the 100 apprentices they take on each year. Future training would depend upon your progress and the result of six-monthly appraisals, which highlight your strengths, weaknesses and desires for advancement. If the need would help Alstom the training would be paid for.
My CV
In my CV I showed initiative and willingness to work to pay my way by going to Thailand. These are skills, which would benefit Alstom, as they would mean less need for me to be supervised so closely. My skill in chess indicates my ability to strategically plan and think things through, a skill, which could be transferred to the workplace to help solve problems. Babysitting shows I can be trusted, are responsible and able to be left to make decisions. My football training shows I am committed to work hard and shows that I try to keep fit. These are all good skills that can easily transferred to the workplace.
EDEN
The EDEN system is proactive customer service, which identifies problems as they are beginning to happen and before the customers are aware of them. Alstom has access to all its turbines by Internet to check if they are working properly. If any faults are discovered an engineer can be despatched to the site before the customer realises the fault. Alstom hope to use this programme to ensure it stays ahead of its competitors. A good customer service involves support and lifetime care. Alstom need to do this because the customer brings money they are expecting value for money and a good after sales service if this is not given Alstom’s reputation could be tarnished. Customer satisfaction is the key to a long-term business.
Alstom do this in many ways they use EDEN, electronic data exchange network, and also have a separate department to deal with after sales service called, OSB. EDEN gives improved support and better technological support to their customers.
EDEN is a cutting edge system, which at the moment therefore could not be improved. However, an area of improvement could be the delivering of spare parts as they take an average of 5 days from a customer requesting a part before they are despatched, 4 days more than is necessary and 4 days longer than Solar, the main competitor. Better use of computerised tracking would speed up the process and so benefit the customer. If not implemented, Alstom could lose major money. After sales service and spare parts account for two-thirds of their income and relates to their main aims, so they cannot afford to achieve below average here.
List of sources and information
- Engineer.
- Customer services manager, Adrian Toyne.
- Sales manager, Mr tubb ICT in Alstom.
- Andrea McMalon, schools liaison officer and HR manager.
- Finance, Mr Franklin.
Kirsty Densham
Garridan
Tinkers lane
Waddington
Lincoln
LN5 9RU
01522 887 664
3rd May 03
Sir or Madam
Alstom Power
Lincoln
Dear sir/madam,
I am writing to you because I would like to apply for a vacant job you are advertising for in the local newspaper. I am applying for the job of an apprentice engineer because I want to learn new skills and work in a prosperous business. I am committed and hard working and like a challenge. I am also determined and interested in building on skills I have acquired from school. A full description is listed on my CV, which is attached to this letter. I am well motivated and work well in a team and on my own. I have never worked in this line of work but I am a quick learner and have always been interested in the engineering profession. Please consider me I will be an asset to your business, if you would like to contact me I have a telephone with an answering machine.
Yours faithfully
Kirsty Densham
