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Problems in the Development of the Business Organization

In the course of the expansion and development of each business organization, it is only naturally that new problems and management issues rises springing up the need for new approaches and strategies in the business structure. Often, these problems are new to the management as they are rooted on the significant growth of the organization. In most cases, the growth itself is the cause of these new problems, as the management tends to overlook these factors due to the increase in the effort demanding by the organization’s development.

Indeed, the growth of the organization opens up an opportunity for the business to attend to issues and problems that are significant to their effectiveness and success. In this aspect, the management sector of the business organization must make changes and approaches in their structure to address the new problems in the growth of their organization. Consider the situation of the Milinder Recycling Company, which in the growth of their business organization has encountered several problems primarily in their human resource aspect.

Some of these problems manifest in the extremely high turnover rate in their organization and the promotion system in the employee section. In these problems, the organization gains and losses employees in

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high rate leaving the organization with employees that are not fully competent and inadequately trained for the responsibilities in the business operation. This has also caused crucial vacancies in the structure of the organization resulting to the need for unqualified and unnecessary promotion.

If not addressed properly, these issues can cause greater problems for the organization such as hindering their growth and even causing a significant economic drought in their labor resources caused by the lack in the training and skills needed for the effectiveness of their employees. To address the said problems, certain aspects and approaches must be change in the structure of the said organization such as developing a better labor relation, reward system, and employee policy. For the issue of the high turnover, new policies particularly in the labor contract and the employee retention must be applied to prevent the loss of employees.

In addition, a better reward system and employee policy must be developed to encourage the patronage and retention of the employees. For the problem of unqualified promotion, trainings and development programs must be developed and widely applied to the labor sector of the organization to ensure that all employees will have an equal opportunity and the needed skills to be promoted to higher positions. Through applying these approaches and techniques, the organization can maintain a stable growth in their organization and ensure the success of their business.

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