PowerGen: The Power Generation Company of Trinidad ; Tobago

Table of Content

PowerGen was established on 24 December 1994 with the divestment of the coevals assets of Trinidad and Tobago Electricity Commission ( T & A ; TEC ) . PowerGen owns and operates the state ‘s three chief power workss at Port of Spain, Point Lisas and Penal. Twenty one of its bring forthing units are gas fired, with the bring forthing units at Port of Spain power works capable of runing either by oil or gas fire.

Our Vision is to be the taking provider of quality energy, committed to the demands of our clients and sensitive to the environment.

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Our Mission is to transcend our clients ‘ outlooks for quality energy in a safe and environmentally responsible mode, making value for our clients, employees and stockholders.

PowerGen ‘s Core Valuess are:

We take ownership!

We build reciprocally good relationships!

We deliver consequences!

We care for state! 1

We take duty for our success and we are accountable for our actions in our administration!

We know our administration and the market in which we operate!

We identify and explore chances for growing!

We strive to aline our personal ends with that of the administration!

We promote and safeguard a positive image of PowerGen! 2

PowerGen recognizes that its hereafter prosperity depends to a big extent on the hiring determinations made today. To this terminal, it is the policy of the Company to enroll the right individuals for the right places and to keep a work force best suited for the available places through ongoing preparation and development. The Company subscribes to the rules of equal chance in its enlisting and choice procedures, choosing employees on the footing of virtue, competence, advancement potency and character without mention to race, cultural beginning, faith or gender.

PowerGen – Not merely Power, People excessively! 1


1 hypertext transfer protocol: //www.caribbeanjobs.com/The-Power-Generation-Company-of-Jobs-322.aspx

2 hypertext transfer protocol: //powergen-co-tt.web25.winsvr.net/AboutUs/CoreValues/tabid/66/Default.aspx

History of PowerGen


The Trinidad and Tobago Electricity Commission was established as a Statutory authorization in 1946 and operates under the Trinidad and Tobago Electricity Commission Act Chapter 54:70 which was revised in 1994 to let the partial divestment of its coevals assets. The Commission now has exclusive duty for the transmittal and distribution of electricity throughout Trinidad and Tobago and presently supplies over 350,000 thousand customers.3


One of the power subordinates of bp, a universe category oil and gas company, is AMOCO TRINIDAD POWER RESOURCES. AMOCO group which has extended experience in the power sector on a worldwide basis.4


Maru Energy, LLC is a entirely owned subordinate of Marubeni Corporation of Japan. Marubeni Corporation operates in reasonably diversified industries with a strong focal point on power sector investing globally. Marubeni has built 72,000 MW of bring forthing works around the universe, and presently owns equity involvement in bring forthing capacity in aggregative 17.000 MW.4


3 hypertext transfer protocol: //www.energy.gov.tt/energy_resources.php? mid=9

4http: //powergen-co-tt.web25.winsvr.net/AboutUs/Shareholders/tabid/63/Default.aspx

Present Day at PowerGen

PowerGen is a portion of the dynamic energy sector in Trinidad and Tobago. It provides electricity to the Trinidad and Tobago Electricity Commission. It employees about 2,000 employees which are distributed at the three power workss and the chief caput office situated around the state.

The oldest power works located in the capital metropolis of Port-of-Spain is tentatively commissioned for closing by 2013. This is to be replaced by a new mechanized power works situated in the suburban country of the metropolis. This has sparked unrest among the employees since information obtained through the pipelines point to restructuring of staff doing the administration leaner.

In add-on, the physical environment has been a cause for concern. Even though they follow high safety criterions on Monday 24th May, 2010 there was a fire in the Port-of-Spain power works which disrupted the electricity around the neighbouring constituencies.5 Apart from that, the two deceases caused by an detonation in June 26th, 2006 at the Penal power works still resonates fright in the heads of employees.6

Recently, there seems to be an addition in employee absenteeism, high rate of employee turnover, low employee morale, hapless productiveness and diminishing profitableness. In December 2009 PowerGen conducted a companywide survey trusting to happen the grounds for this downward bend and solutions to relieve these debatable issues in order to stay profitable in an progressively competitory environment.


5 hypertext transfer protocol: //www.news.gov.tt/index.php? news=3981

6 hypertext transfer protocol: //www.trinidadexpress.com/news/Coroner__Arrest_PowerGen_employee-110895929.html



“ Many of us spend a good trade of our life working. At work, we make friends, learn about ourselves, grow and develop, we become advanced, energized and stimulated. Working hand in glove with others, we are able to make positive energy that gives us joy and added value to our companies ” ( Lynda Gratton, 2007 ) .

“ Peoples are the chief resource of any administration. Without its members an administration is nil, an administration is merely every bit good as the people who work within it ” ( Mullins 2010 ) . Therefore, Mullins ( 2010 ) argues “ the effectual direction of the people resource ” is extremely of import for an administration ‘s endurance and success particularly in an extremely dynamic and competitory environment which encompasses most administrations.

In Essence, the survey of Organisational Behaviour ( OB ) is intrinsic for the administration ‘s success. “ Organizational Behaviour is concerned with the survey of the behavior of the people within an organizational scene. It involves the apprehension, anticipation and control of human behavior ” ( Mullins, 2010 ) .

Johns and Saks ( 2005 ) refer to OB as the systematic survey of the attitudes and behaviors of persons and groups in administrations and supply penetration about efficaciously pull offing and altering them. In add-on, OB could be by and large defined as “ the survey and apprehension of single and group behavior and forms of construction in order to assist better organizational public presentation and effectivity ” ( Robbins and Judge, 2007 ) .

Therefore, the survey of OB is concerned with many aspects of organizational life and harmonizing to Hellriegel, Slocum and Woodman ( 1999 ) , “ One manner to recognize why people behave as they do at work is to see an administration as an iceberg. What sinks ships is n’t ever what crewmans can see, but what they ca n’t see. ” Therefore, it is merely every bit of import to analyze the covert behavioral facets of an administration ( attitudes, communicating forms, informal squad procedures, personality, underlying competences and accomplishments and struggle ) every bit good as the overt formal facets such as ; engineering, formal ends, regulations and ordinances, administration design, physical installations and surface competences and accomplishments. With this in head, the PowerGen Company will be evaluated utilizing four chief OB issues in order to see the administration holistically. These are: administration construction, leading manners, power and authorization and motive.

Statement of Problem


Mullins ( 2010 ) , work administrations are structured to make an environment that facilitates optimal on the job conditions. In order for maximal productiveness to take topographic point rapprochement of the administration ‘s demands with that of the employees ‘ must go on. Therefore, an rating of the workers ‘ demands and PowerGen ‘s demands to cognize whether there is synergy or inharmoniousness is necessary.

Purposes and Aims

In this survey, there will be an rating of organizational behavior issues in relation to the Power Generation Company to measure the causes for the current deficiency of productiveness.


To measure the importance of holding a good organizational construction and how this impacts on the behavior of employees and the overall public presentation of the administration.

To find the consequence of leading manner on the behavior of employees and their degree of committedness to undertakings.

To measure the impact of power and authorization in the administration and how this impacts on behavior.

To measure if a relationship exists between motive and employee productiveness.

To urge any necessary alterations in order to work out the issues stated above.

Literature Review and Analysis

Administration Structure:

William jennings bryans and Cronin ( 1983 ) province, a concern establishes an administration construction in an effort to make a model to ease the meeting of aims. This construction in the administration has an impact on functions, communicating flow, location of authorization and duty, efficiency and effectivity. Besides, it serves as the “ formal power base or hierarchy within the administration, and constitutes an of import influence in the development of members ‘ attitudes and behavior. ”

Baptiste ( 2000 ) asserts that administration construction is a manner of apportioning work functions, administrative and other duties that creates a form of interconnected work activities and allows the administration to carry on, organize and command its work activities.

Nathan birnbaums and Stalker ( 1963 ) as cited in Baptiste ( 2000 ) separate two types of administrations. These are: “ mechanistic ” and “ organismal ” which is subsequently known as “ organic. ” A mechanistic administration is stiff and is good suited for a bureaucratic construction where determination devising is everyday and the environment is a comparatively stable one. On the other manus, an organismal administration is flexible since the environment is quickly altering and requires non-routine and innovatory determination devising.

Harmonizing to Burns and Stalker ( 1963 ) , PowerGen operates as a mechanistic construction with a high grade of specialised occupations with each degree of the hierarchy holding immediate supervising and coordination. There is a hierarchal construction of control, in add-on to authorization and communicating. To reenforce the hierarchal construction, there is centralization of information and decision-making at the top of the hierarchy. Besides, there is “ perpendicular interaction ” between higher-ups and subsidiaries. Last, trueness to the administration is enforced every bit good as obeisance to higher authorization. All of these features can impact on the morale of employees and productiveness.

Centralised decision-making isolates senior direction from the remainder of the administration and hence, subsidiaries tend to experience a sense of disaffection. They feel isolated from the company ‘s ends and aims because employees are non integrated into the creative activity of the concern scheme and aims. This disaffection can take down employee morale and lower productiveness degrees. Harmonizing to Karl Marx ( 1844 ) as cited in Barnard, Burgess and Kirby ( 2004 ) , disaffection is a systemic consequence of capitalist economy which is built-in in the work environment. For Marx, work should be carry throughing and fulfilling since it involves a originative procedure nevertheless, the capitalist system of work sucks the creativeness and satisfaction out of this procedure. The middle class owns and controls the agencies of production and exploits the workers for their labor in return for a minimum pay. These workers become “ pay slaves ” . So excessively, since PowerGen is runing in a Capitalist manner of production workers will experience anomic and exploited by senior direction who acts as the middle class in the post-industrial epoch.

Henri Fayol ( 1916 ) , in his book ‘Administration Industrielle et Generate ‘ as cited in Marino ( 2010 ) developed a list of 14 rules which depicts the procedure for obtaining a good administration construction and demonstrates how to accomplish profitableness. ( See Appendix B, Table 1.1 for a comprehensive list. )

From critical scrutiny of this list it is apparent that PowerGen has a perpendicular division of labor which is necessary for truth and effectivity given the critical nature of the occupation but does non fulfill the societal demands of the workers. Discipline is non-existent in the administration because there is no sense of regard between employees. Employees are ever utilizing blasphemous linguistic communication towards supervisors and employees are ever showing their concerns in a dissatisfied mode. Built-in in this administration is hapless integrity of bid. Subordinates study to multiple foremans which creates confusion harmonizing to Fayol.

This hierarchal construction which encapsulates a perpendicular division of labor, formal regulations and processs and harmonizing to Fayol ( 1916 ) , a scalar concatenation of bid represents a bureaucratic construction proposed by Max Weber ( 1964 ) . Weber ‘s thoughts stressed the importance of direction through reason that is, “ rational legal authorization ” every bit good as underscoring the regulations and ordinances of the workplace to keep order and control. Weber saw bureaucratism as an ideal type which has the undermentioned features: division of labor, hierarchy of authorization, public office, virtue choice, calling form and nonsubjective regulations as seen in PowerGen ‘s nucleus values.7

Although bureaucratisms are going less popular amongst most administrations today, it is still present within administrations such as PowerGen which is due to the fact that high hazards ( fire, detonation, employee hurts and loss of life ) associated with the occupation requires a stable stiff construction ( Mullins, 2010 ) . Therefore, a bureaucratic construction is necessary in this case.

Nathan birnbaums and Stalker ( 1963 ) as cited in Bryans and Cronin ( 1983 ) inquiry the “ goodness of tantrum ” of bureaucratic administrations to the economic and societal environments facing them. Specialization or division of work would de-motivate the workers since they would non see the holistic position of the work they are making. This position has besides been shared by Durkheim ( 1893 ) as cited in Barnard, Burgess and Kirby ( 2004 ) where the division of labor can do feelings of anomy and normlessness. In add-on, bureaucratic administrations are criticised for holding excessively much “ ruddy tape. ” This creates communicating jobs where the sending and receiving of information can be delayed which are particularly critical when exigencies occur.

Inter alia, Argyris ( 1964 ) as cited in Bryans and Cronin ( 1983 ) composing from the Neo-Human Relations School claims that bureaucratic administrations restrict the person ‘s psychological growing doing feelings of failure, defeat and struggle. He suggests that there should be single duty, self-denial and an chance for persons to use their full abilities within the administration. Not being able to make this could ensue in de-motivation of staff, as they could easy acquire bored due to the humdrum occupation in which they perform.

Merton ( 1940 ) as cited in Barnard, Burgess and Kirby ( 2004 ) is the chief critic of Weber ‘s bureaucratism being an ideal type. He advocated the “ disfunctions of bureaucratism. ” Merton observed that people in bureaucratisms such as employees of PowerGen develop “ trained incapacity ” , in which regulations are obeyed for their ain interest instead than as a agency to an terminal.


7 hypertext transfer protocol: //www.ega.edu/facweb/strickland/soci1101online/CHAPTEROUTLINES/OutlineCHAPTER06.html

Besides, the hiring patterns may be based on a stiff set of formal demands instead than the ability to execute the undertakings involved in a occupation. Last, existent jobs do non ever suit into the compartments designed to manage them ; this can take to a “ tally about ” for people seeking to decide jobs.

In add-on to a bureaucratic construction, PowerGen displays a functional construction as depicted in Appendix A, Figure 1.1 Mintzberg ( 1983 ) argues that “ machine bureaucratism ” is extremely formalised and there are direct supervising and standardization of work procedures. This type of administration is necessary due to the fact that work processs, if altered can ensue in accidents and loss of life. Therefore, functional constructions allow maximal supervising and control. Besides, the demand for specialized people to pull off complex jobs and state of affairss where good decision-making is cardinal to the operations is necessary.

However, good decision-making besides entails speedy decision-making which can be a job with functional constructions. Centralised decision-making by the pull offing manager or senior direction squad is understood accordingly, due to the increasing size of the administration ; communicating can be slow, nerve-racking and have “ ruddy tape. ” Gordon ( 1996 ) argues that a functional construction is non appropriate where rapid communicating is necessary. Therefore, the disadvantages antecedently outlined by holding a mechanistic, bureaucratic and functional administration construction may the ground for loss of productiveness and unhappy employees.

Leadership Manner:

Charles Handy ( 1976 ) states that, “ a leader is one who shapes and portions a vision which gives point to the work of others. ” Bryans and Cronin ( 1983 ) argue that leading is a critical portion of the control system in an administration. If executed good, directors can act upon the behavior and attitudes of their subsidiaries therefore, acquiring them to work expeditiously.

PowerGen being a bureaucratic construction, the executive and line directors subscribe to an bossy leading manner ( Lewin et al. 1939 ) . By implementing this manner of leading, productiveness remains high but when direction is non present there is a important diminution in productiveness. In add-on, workers develop a casual attitude to work when they are non being coerced. There is a high committedness degree from workers to finish undertakings when the bossy manner is used nevertheless, if workers are left entirely, they are non committed to completion of their undertakings. Recently, direction used a advisory manner as advocated by Likert ( 1961 ) and there has been more cooperation from employees and a two – manner exchange of information. However, this manner has been trumped by the dogmatic, indurate and intemperate leaders who are fixed on being autocratic leaders.

It can be argued that the bossy leading manner employed is centred on commanding the work force. For Lewin et Al. ( 1939 ) and The Survey Research Centre at the University of Michigan ( 1950s and 1960s ) cited in Bryans and Cronin ( 1983 ) assert that an bossy leading manner might ease productiveness but occupation satisfaction and employee morale can be badly affected. Using a democratic or participative attack is more suitable for pull offing workers since they can be involved in the decision-making procedure of how to transport out undertakings which is done by group treatments ( Mullins, 2010 ) .

However, Fiedler ( 1967 ) and Tannenbaum and Schmidt ( 1958 ) as cited in Baptiste ( 2000 ) argue that the leading manner of a director by itself does non promote or deter employees ‘ productiveness degrees. There are situational variables that must be taken into history. For case, the employees at PowerGen might non desire to be given liberty of their actions and may prefer to be led. In add-on, the undertakings to be carried out at PowerGen would necessitate leaders with proficient expertness and cognition to depute workers and guarantee efficiency in workers ‘ responsibilities hence, the leading function can non be taken lightly and handed over to subsidiaries. As such, the situational leader might be the ideal type.

In add-on, the statement rewards on whether or non leaders are born and non made. The position that leaders are born is gleaned from the trait theory. Gordon ( 1996 ) asserts, more than one 100 surveies indicate that leading traits are built-in in the individual ‘s societal and physical features. This position has been extremely criticised. For the eventuality theoreticians, leaders are non born but besides can non be made. They doubt the fact that person can be trained to bring forth an ideal manner of leading. PowerGen implements leading preparation programmes for directors and supervisors but harmonizing to Fiedler ( 1967 ) it is easier to alter the state of affairs of the leader than to alter the leader ‘s manner.

As Mullins ( 2010 ) provinces there is no 1 “ best ” leading manner. Different leading manners are needed to get by with different organizational state of affairss. Different types of leading may besides change at different phases in the development of an administration. Leadership entirely can non increase productiveness and efficiency ; it must be coupled with other factors to be good.

Power and Authority:

Dahl ( 1957 ) as cited in Bryans and Cronin ( 1983 ) interprets power as the capableness to exert influence over the behavior of others. As such that A has something ( power ) over B to the extent that A can acquire B to move in a certain manner that B would non usually do. While, authorization is when person has the right to enforce influence and is tantamount to legalize power.

In an administration such as PowerGen, power and authorization is imbedded in the heads ‘ of workers at the top echelons of the administration ‘s construction because the hierarchal, bureaucratic construction is meant to enforce these values on them. Harmonizing to Weber ( 1964 ) as cited in Bryans and Cronin ( 1983 ) “ rational legal authorization ” is understood as portion of the work construction. Employees recognise this power as a portion of the director ‘s function and map in the administration.

PowerGen exudes in its civilization the thrust for power and authorization. This is seen by their nucleus values ( We take ownership! ) which become a living portion of the administration and its employees. Harmonizing to George Herbert Mead ( 1913 ) as cited in Barnard, Burgess and Kirby ( 2004 ) , the theory of “ Symbolic Interaction ” speaks about the significances that humans topographic point on symbols though a procedure of interaction. One of the most of import symbols is linguistic communication. Therefore, as PowerGen incorporates this thrust for power in their written values implies that employees must take this construct earnestly.

The value system besides makes up the administration ‘s civilization. For Schein ( 1992 ) , civilization is “ a form of basic premises – invented, discovered or developed by a given group as it learns to get by with its jobs of external version and internal integrating – that has worked good plenty to be considered valuable and therefore to be taught to new members as the right manner to comprehend, believe, and experience in relation to these jobs ” Therefore, the demand for power and authorization is intrinsic in the administration. If employees are self-asserting and decisive so this civilization will be right for them nevertheless, one time employees are submissive and indecisive this civilization becomes a job for these persons. Problems of societal consensus, integrating and societal solidarity can originate and workers can experience stray and bewildered.

In add-on, PowerGen ‘s work force consists of largely males. Peter Wilson ( ) in his work on “ Reputation and Respectability in the Caribbean ” argues that work forces are concerned about their repute while adult females are concerned with reputability. This repute is gained by accomplishing “ machisimo ” which is done through conquering. So excessively, males in the workplace are concerned with their repute and strives for power and authorization to accomplish influence over others. The administration shows gloss of a patriarchal construction.

Gallic and Raven ( 1959 ) distinguishes five types of power in an administration. These are: place or legitimate power, resource or wages power, coercive power, adept power and personal or referent power. Regardless of which type of power is used by leaders, it can either function to carry through the administration ‘s ends or disintegrate the cloth of the administration.


Mentioning from Mullins ( 2010 ) , the Chartered Management Institute ( 2006 ) defines motive as, “ the creative activity of stimulations, inducements and working environments that enable people to execute to the best of their ability. The bosom of motive is to give people what they truly want most from work. In return directors should anticipate more in the signifier of productiveness, quality and service. ”

Mullins ( 2010 ) claims the demands and outlooks of workers can be classified into two groups ; the physiological or extrinsic incentives and the societal or intrinsic incentives. Extrinsic incentives are “ touchable ” wagess such as ; salary, fringe benefits, security and contract of service whereas, the intrinsic incentives are “ psychological ” wagess such as ; positive acknowledgment, having accomplishment, and being treated in a sort mode. However, each single demands may change and hence, there is no right manner to actuate staff.

Furthermore, when workers are motivated they perform their undertakings expeditiously and hence, achieve the administration ‘s ends. When workers are de-motivated there are high rates of absenteeism, high turnover rates and low degrees of productiveness as seen in the December 2009 survey done by PowerGen. What are the grounds for this and how to better motive?

Can money actuate employees to execute expeditiously? For F.W. Taylor, “ Scientific Management ” cited in Mullins ( 2010 ) money is the chief incentive. Employees are viewed as the “ rational economic adult male ” where wage inducements drive workers to bring forth expeditiously. For PowerGen ‘s workers even though money is a important incentive, it is non the chief 1.

Sing at the content theories, Maslow ( 1954 ) cited in Mullins ( 2010 ) , claims that workers have a “ hierarchy of demands ” that must be met for motive to take topographic point. Looking at figure 1.2 below, the lower order demands ; physiological, safety and societal demands must be satisfied before the higher order demands ; esteem demands and self-actualization can be satisfied. At PowerGen the safety demands are non satisfied. Workers are faced with nerve-racking and dangers state of affairss such as fires, detonations and even decease on a day-to-day footing. Not to advert, at the Port-of-Spain power works the machinery and equipment are really dated and can present a menace to workers ‘ safety. Besides, due to the approaching closing of the works workers have mixed reactions about occupation security. No 1 is certain to retain their occupation.

Figure 1.2 Maslow ‘s Hierarchy of Needs

Beginning: The Spartan Student, 2010. The Animal of Acorn Abbey [ online ] Available at: & lt ; hypertext transfer protocol: //www.google.tt/imgres? imgurl=http: //1.bp.blogspot.com/_-A7-TY0PBXs/TECiGiWgEDI/AAAAAAAAA0w/Y_xQjU78Jnc/s400/maslows_hierarchy & gt ; [ Accessed 12 December 2010 ] .

Furthermore, Alderfer ‘s ( 1972 ) “ ERG Theory ” cited in Mullins ( 2010 ) condenses Maslow ‘s five degrees of demands to three degrees. They are: being, relatedness and growing demands. Being demands are basic physiological demands and safety demands, furthermore protection from physical danger. Again it can be noted that the workers ‘ being demands are non satisfied hence, if such a cardinal demand is non met, workers can non be motivated.

Herzberg ( 1959 ) cited in Baptiste ( 2000 ) came up with an attack to occupation satisfaction called the “ motive – hygiene theory. ” The hygiene factors such as: administration policy and disposal, supervising, salary, interpersonal dealingss and working conditions, if this is absent can do occupation dissatisfaction. PowerGen workers are dissatisfied because of the bureaucratic administration construction, bossy leading manner and the hapless on the job conditions. In contrast, the incentives such as: accomplishment, acknowledgment, work itself, duty and promotion can do occupation satisfaction. The workers at PowerGen have advancement chances every bit good as an one-year acknowledgment and awards ceremonial which gives awards to employees after they have served the company between 10 to thirty five old ages. Awards are besides given out for “ Best Department of the Year ” and “ Safety Recognition. ” However, these attempts on behalf of the company do non help in occupation satisfaction for the employees.

In contrast to Taylor ‘s “ rational economic adult male ” the Human Relations School postulated the “ societal adult male position. ” “ This position emphasises the societal factors of work, such as: the significance of the informal administration, managerial leading manners and effectual communicating systems ” ( Bryans and Cronin 1983 ) . McGregor utilizing this attack developed the “ Theory X and Theory Y ” school of idea ( Bryans and Cronin 1983 ) . He believed that whatever premises directors adopt about workers can make a “ self-fulfilling prognostication. ” For case, a director sing workers as “ Theory X ” will believe workers are lazy, dislikes work and evades duty will follow an bossy attack which can coerce workers to go this manner even if they are non. This seems to be the instance with workers at PowerGen. However, following the “ Theory Y ” attack, workers are viewed as keen to accept duty, like work and can exert self- control. Therefore this type of director would utilize a participative leading manner.

Last, Vroom ‘s ( 1964 ) “ Expectancy Theory ” cited in Mullins ( 2010 ) states an employee will be motivated to work harder if the terminal consequence is desirable. Therefore, PowerGen ‘s employees are non motivated because there are no luring wagess. For case, there are no year-end fillips, wage inducements, or other fringe benefits every bit good as societal acknowledgment. For Locke et Al ( 1981 ) cited in Mullins ( 2010 ) fiscal inducements can assist workers to accomplish their personal ends which in bend produces a more productive worker and therefore, achieves the ends of the administration.

Motivation of employees in an administration is ne’er an easy undertaking to carry through nevertheless, if it is done can make a profitable administration.


The bureaucratic construction can be adjusted to restrict all of the disfunctions of bureaucratism. One manner can be to set up a level hierarchy with decentralized determination devising ( Mullins 2010 ) . In add-on, Burns and Stalker ( 1963 ) cited in Baptiste ( 2000 ) claims that following an “ organic ” construction can be more flexible than a “ mechanistic ” one.

Besides, a participative or democratic leading manner should be used ( Lewin et al 1939 ) . This allows group determination devising and facilitates integrating and communicating. Leting workers to be a portion of the determinations advocators involvement from all members of staff which facilitates assimilation of company ‘s aims.

Power and authorization can be extended to subsidiaries in state of affairss that are non-threatening to the administration. This helps to authorise workers who will desire to accomplish the company ‘s ends.

For Gary Kusin ( 2005 ) cited in Mullins ( 2010 ) , “ work is about allowing people know they are of import, their difficult work and attempts affair, and they ‘re making a good occupation. And this sort of acknowledgment, in fact, can sometimes be more of import than money. ” This was besides echoed by McClelland ( 1961 ) cited in Bryans and Cronin ( 1983 ) who states, employees need “ continual feedback, since it is merely from the cognition of success that satisfaction is derived. ”

In add-on, employees can be motivated by non-financial wagess. Elton Mayo in the 1930s came up with the “ Hawthorne Consequence ” cited in Bryans and Cronin ( 1983 ) where employees will work more expeditiously if they are given acknowledgment such as: a public handshaking for a occupation good done or an employee of the twelvemonth award.

Last, Herzberg ( 1959 ) cited in Baptiste ( 2000 ) provinces occupation satisfaction can be achieved by occupation rotary motion, occupation expansion and organizing independent work groups. This involves developing workers in a assortment of undertakings, including undertakings in the occupation to add enrichment and holding workers ‘ input in occupation design every bit good as giving them freedom to transport out undertakings.


The research has shown that the workers ‘ demands at PowerGen are discordant with the administration. In add-on, the organizational construction can impact on the behavior of workers and their public presentation because it forms the footing of the company. The construction becomes the hub where all the activity is centred around and hence, must accommodate the demands of all the stakeholders.

Management leading manners can finally affect workers ‘ attitudes and serve to derive committedness from them or can go a hinderance to the administration. The leading manner should be one that can derive efficiency from workers and therefore must be in synergism with the administration ‘s construction.

Power and authorization used in a indurate mode can disintegrate any administration. Power and authorization is built-in in all administrations and must hence be used sagely. It can help in acquiring the occupation done efficaciously and besides, inefficaciously.

Last, motive is straight linked to worker productiveness. Hence, all attempts should be made by the administration to maintain workers motivated. A happy worker is a difficult worker and after all companies prefer difficult workers since this will take to greater productiveness, profitableness and sustainability in a competitory environment.

Appendix A

Figure1.1 PowerGen ‘s Organisational Chart


Beginning: PowerGen, 2008. Organisational Chart [ online ] Available at: & lt ; hypertext transfer protocol: //powergen-co-tt.web25.winsvr.net/People/OrganisationalChart/tabid/72/Default.aspx & gt ; [ Accessed 18 November 2010 ] .

Appendix B


1. Division of work:

The work in an organisation must be divided among persons and sections. Division of work leads to specialisation. It consequences in truth, velocity and spruceness in work. Specialization besides leads to invention.

Henri Fayol advocated division of work, because every alteration of work requires version or accommodation which reduces end product. However, division of work has its ain bounds which should non be exceeded.

2. Authority and Duty:

Fayol stressed that authorization should be equal to duty. If authorization is in surplus of duty, so the director may be tempted to misapply it. On the other manus, if a individual is held responsible without giving him equal authorization, so he may experience defeated.

In other words, authorization should non be more and less duty. Again, duty should non be more and less authorization. There should be a proper balance between authorization and duty.

3. Discipline:

Fayol stressed the demand for subject in an organisation. Discipline involves non merely obeisance to regulations and ordinances of the organisation, but more significantly it involves application and dedication on the portion of the employees. It besides involves outward Markss of regard.

Fayol wrote that the best agencies of keeping subject is to hold disciplined higher-ups at all degrees, clear and just understandings, and wise usage of all punishments.

4. Integrity of Command:

It means a subsidiary should have orders from merely one superior. There should non be multiple foremans. The subsidiary should non be made to describe to several foremans.

Fayol observed that if one subsidiary receives orders from more than one higher-up, so everything will be in upset. Lack of integrity of bid is like “ Too many cooks spoil the soup. ”

5. Integrity of Direction:

There should be ‘one caput, and one program ‘ for a group of activities holding the same aim. There can non be different programs for the same group of activities holding the same aim.

6. Subordination of single involvement to general involvement:

The involvement of one employee or a group of employees should non predominate over that of the full organisation. Every employee or a group should work in the involvement of the organisation and non for their ain opportunism.

In other words, the involvement of the organisation should come foremost and so single or group involvement. This can be ensured by: good illustration on the portion of higher-ups, holding just understandings, and changeless supervising.

7. Wage:

Wagess and wages should be just. It should depend on fortunes, such as cost of life, ability of the company to pay, predominating pay rates in the industry, etc. Besides, the value of the employee must be taken into consideration.

Fayol stressed that apart from fiscal benefits, non-financial benefits should be provided such as good working conditions, canteen installations, diversion installations, etc.

8. Centralization:

Fayol stated that certain affairs are to be centralized and others to be decentralized. There is a demand to hold a proper balance between centralisation and decentalisation. He advised that utmost centralisation or decentalisation is to be avoided, particularly in big companies.

9. Scalar Chain:

It refers to the line of bid from top degree to the lowest degree. He felt that scalar concatenation demands to be followed, but non at all times.

He stressed that the scalar concatenation can be short-circuited or broken if the state of affairs so demands in the involvement of the organisation. He advocated the ‘Gang-plank Principle ‘ . Gangplanks should be used to forestall the hold of action

10. Order:

Fayol stated that there should be order in the organisation. He stressed that there should be a topographic point for everything, and everything must be in its topographic point. Again, there must be a topographic point for everyone, and everyone must be in his topographic point

Therefore, this rule requires the orderly organisation and arrangement of work forces, machines and other resources. Misplacement would take to misapply and perturb.

11. Equity:

All members of the organisation should be treated every bit, depending upon the public presentation and fortunes. In other words, there must non be any fondness in transportations, publicities, etc. Fayol stressed that directors must exert justness and kindness while covering with their subsidiaries.

12. Stability of Tenure:

Fayol pointed out that directors every bit good as non-managers need clip to larn and understand their occupations. If they leave or are removed within a short period of clip, the acquisition clip will be wasted.

In other words, employees should non be kept impermanent for a long period of clip. Employees should be made lasting so that they do non go forth the organisation. However, unqualified individuals need to be removed or replaced and those who perform good must be rewarded.

13. Enterprise:

The superior must give his ain amour propre to promote and animate those under him to order to demo inaugural. Subordinates should be given freedom to come up with suggestions and thoughts. This will non merely add to the success of the organisation but will besides hike the morale of the subsidiaries.

14. Esprit de Corps:

The superior must promote esprit de corps ( squad spirit ) among his subsidiaries. It is the squad spirit that consequences in trueness, and dedication and committedness of the employees.Fayol warned of the effects of divide and regulation, and maltreatment of written communications. It is the squad spirit that frequently brings success to the organisation.


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