Gateway Engineering Limited - Case Study

 

Background

 

Gateway Engineering Limited has been in business for 47 years. The company was founded and managed by  and his family until earlier this year when it was acquired by a multi-national company. 

 

The new Directors have appointed a new Chief Executive Officer (CEO) and have emphasized that they require the organisation to move towards a “customer focus” and over the next year, demonstrate to the parent organisation that they are embracing the idea of “Valuing Diversity”. (This is because the UK Government has let it be known that all public sector organisations should only sub-contract with organisations that can demonstrate “diversity in employment”.) The organisation has also managed to win a substantial new contract that will mean around 850 new jobs over the next two years (providing they can deliver the level of customer service they have promised!)

 

The organisation has a turnover of £40 million and currently employs around 1400 staff in 4 different Divisions at different locations in the North East of England, providing management services to both businesses and the general public. 

 

Fifteen years ago the company employed 3,500 people. It had developed special techniques and management systems that made it an attractive contractor to many companies who were looking to “contract out” parts of their own businesses. These customers were not confined to the engineering and construction industries, and the organisation was proud of their “broad customer base”.

 

As operating costs rose, and IT systems developed, these business customers began to dwindle, and in an attempt to limit the number of redundancies, the company started offering some of its services to the general public. These services include the contract purchase of telecommunications time, gas, electricity and oil, which are sold on to the public at a premium. However, in spite of many “restructuring exercises”, it has continued to shed staff and has never really been very profitable.  In recent years the company has seen its staff turnover rise and increased difficulty in attracting new employees.

 

Each Division has its own way of tackling its own Human Resource issues and negotiating pay and operating systems with their own staff.

 

The CEO visited each location soon after appointment and made the following observations on each Division:

 

Operations (950 staff)

 

This is the traditional heart of the organisation. Employees are divided into “project teams” of various sizes, depending upon the particular service they are providing, and the particular customer group. Groups can earn team bonus if their service is profitable, and managers are responsible for the distribution of the bonus amongst team members. 

 

The groups are set up on the basis that when a new “project” is required, the Divisional General Manager appoints a project manager (internally) who recruits their own “project team”, either from other project teams, or from outside.  There is no formal induction and new staff appear to learn “on the job”.

 

Most managers are male, and most of the teams are single gender (mostly male, with very few people from ethnic minorities).  Teams appear to work independently and there is a strong spirit of competition between all the teams, with lots of good humoured “backchat” evident.

 

Support Services (69 staff)

 

This covers areas such as Finance and Accounts, Estates Management (Maintenance, Security, Porters and Catering), Internal IT support and Personnel Services.

 

The Finance Manager is responsible for the whole Division. He has 4 Heads of Department, each providing appropriate administrative support to the rest of the organisation.

 

The Finance Manager believes in ensuring that his staff are suitably qualified for their work. They are either recruited with the “right” qualification (ranging from Professional Qualifications e.g. ACCA, CIPD, through to NVQs in Security, Catering etc) or they are required to attend suitable courses to gain a qualification.  All staff are encouraged to continue their education and will be supported by the company to part-time degree courses in areas such as Management or Information Technology.

 

However, it seems to take a long time to get things done, and things are only done when “the paperwork is correct”.  This means that most things have to have the permission of a manager.

 

Information Technology Services  (350 staff)

 

This is the “star” Division. It is profitable, providing information and “Help Desk” services to a wide range of customers.

 

It appears to have an informal atmosphere and people obviously talk to colleagues outside their own team. They are able to respond quickly to requests for new services from customers, (these usually come through sales representatives) or the staff themselves have ideas for improving services.  Team leaders encourage staff to keep up to date on new IT applications, both through attendance on courses and through finding information on the Internet.  The IT Manger also encourages weekly team briefings and regularly meets his staff for one to one progress meetings.

 

Staff turnover lower than average for IT in this area, although still quite high. Recruitment is formal, managers etc, but there is always a good response when it becomes known that Gateway are looking for IT staff.

 

Marketing & Sales (23 staff)

 

The Marketing Manager says he “knows when staff are any good” and can “spot good job candidates as soon as they walk through the door”. He feels there will be no problem in getting the right staff into the right positions to ensure that customer needs are met in the future.  Like all other divisions, the Marketing Manager uses interviews as the sole method of selecting new staff, although is increasingly finding it difficult to attract candidates to the business and feels the quality of candidates replying to advertisements in the local press are poor.

 

Managers in the Division normally agree the details of any new contract or amendment to a contract before it is implemented, as “sales staff are not really experienced enough to understand all the loopholes that could occur in a contract”


 

DATA TABLES

 

 

 

Total Staff

Operations

Support Services

IT Services

Marketing & Sales

 

Total

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

 

 

 

 

 

 

 

 

 

 

 

 

Divisional Managers

4

4

0

1

0

1

0

1

0

1

0

Senior Managers

16

12

4

4

0

2

2

4

1

2

1

Managers

72

49

23

28

7

3

5

15

10

3

1

Staff

1300

999

301

797

113

20

36

180

139

2

13

Totals

1392

 

 

950

 

69

 

350

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ethnicity

Staff with acknowledged disability

Ave employees

Staff Turnover Annual Index

 

 

White

Minority ethnic

2000 -2004

2004

 

 

M

F

M

F

M

F

M

F

 

Organisation Total

1047

322

17

6

9

1061

338

5.37%

18.64%

 

Operations

826

120

4

0

2

835

140

4.78%

13.31%

 

Support Services

23

41

3

2

2

26

41

19.20%

12.20%

 

IT Services

190

148

10

2

5

193

143

6.22%

6.99%

 

Marketing & Sales

8

14

0

1

0

7

14

0

21.42%

 

 

 

 

 

 

 

 

 

 

 

 

 

Regional Minority Ethnic population = 5.36%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Training budget spend (£000)

 

 

 

 

 

 

 

 

 

2004

2002

2000

 

 

 

 

 

 

 

 

Organisation Total

120

95

87

 

 

 

 

 

 

 

 

Operations

7

16

22

 

 

 

 

 

 

 

 

Support Services

12

10

9

 

 

 

 

 

 

 

 

IT Services

95

63

50

 

 

 

 

 

 

 

 

Marketing & Sales

6

6

6

 

 

 

 

 

 

 

 

 

 

 

Organisation Age Profile

 

 

 

 

 

 

 

 

16-25

26-35

36-45

46-55

56-65

 

 

Divisional Managers

M

0

0

1

0

3

 

 

 

F

0

0

0

0

0

 

 

Senior Managers

M

0

2

5

1

4

 

 

 

F

0

0

3

1

0

 

 

Managers

M

3

15

11

13

7

 

 

 

F

2

5

10

5

1

 

 

Staff

M

352

303

137

166

41

 

 

 

F

118

45

77

58

3

 

 

 

 

 

 

 

 

 

 

 

 

 

Age Profile (Operations)

 

 

 

 

 

 

 

 

16-25

26-35

36-45

46-55

56-65

 

 

Divisional Managers

M

0

0

0

0

1

 

 

 

F

0

0

0

0

0

 

 

Senior Managers

M

0

0

1

0

3

 

 

 

F

0

0

0

0

0

 

 

Managers

M

1

3

7

12

5

 

 

 

F

0

0

3

4

0

 

 

Staff

M

303

216

102

144

32

 

 

 

F

33

12

21

45

2

 

 



 

 

 

 

 

 

 

 

 

 

 

Age Profile (IT Services)

 

 

 

 

 

 

 

16-25

26-35

36-45

46-55

56-65

 

Divisional Managers

M

0

0

1

0

0

 

 

F

0

0

0

0

0

 

Senior Managers

M

0

2

2

0

0

 

 

F

0

0

1

0

0

 

Managers

M

2

10

2

1

0

 

 

F

2

2

5

0

1

 

Staff

M

49

86

34

10

1

 

 

F

56

25

48

10

0

 

 

 

 

Age Profile (Support Services)

 

 

 

 

 

 

16-25

26-35

36-45

46-55

56-65

Divisional Managers

M

0

0

0

0

1

 

F

0

0

0

0

0

Senior Managers

M

0

0

1

0

1

 

F

0

0

1

1

0

Managers

M

0

0

1

0

2

 

F

0

2

2

1

0

Staff

M

0

1

1

10

8

 

F

21

6

5

3

1

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

Age Profile (Marketing & Sales)

 

 

 

 

 

 

16-25

26-35

36-45

46-55

56-65

Divisional Managers

M

0

0

0

0

1

 

F

0

0

0

0

0

Senior Managers

M

0

0

1

1

0

 

F

0

0

1

0

0

Managers

M

0

2

1

0

0

 

F

0

1

0

0

0

Staff

M

0

0

0

2

0

 

F

8

2

3

0

0


 

 

 


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