Term Paper

  • Uncategorized


Thecompany that I worked for was Northrop Grumman (CNGS) IntelligenceSystems Division. I was employed there for almost 4 years as aregional site manager. The organization deals with informationsystems and technical services. The information systems departmenthandles solutions for defense, intelligence, civil agencies andbusiness customers. Their products include software forcybersecurity, airborne battlefield communications, and fraudprevention systems (Strack et al., 2013). The technical servicessector offers maintenance and upgrade of various systems that theycreate. They also provide training for various professions such asengineering that are useful globally (Strack et al., 2013).Currently, it employs over 75, 000 people and has an annual return ofabout 25 billion US dollars (Strack et al., 2013). My duties at thecompany entailed quality control and quality assurance for varioussystems developed by the company to ensure that they were specificfor every contract. I supervised 74 workers that dealt with the careof military crafts. During the period that I worked for the Northrop,I was able to understand its business model and the structure of theorganization. The business model is set in a manner that ensurestotal customer satisfaction while also handling competition fromrelated companies. The organization provides military services forboth local and foreign governments. Through the oversight of theDepartment of Defense, Northrop foreign sales account for 85% of itsrevenue (Strack et al., 2013). The company faces stiff competitionfrom other organizations such as Boeing and Booz (Massey, 2015). Theyensure that their tenders for various contracts are considered byassuring quality products and services at a moderate cost. Thesestrategies have helped Northrop to continue expanding through theyears. The organizational structure for the company consists of aboard of directors that has 11 members. Each sector of the companyhas a President that handles every process in their department. Theorganization has a hierarchal structure whereby information is passedfrom the top management to the lower levels (Brickley et al., 2016).Each section of the department where I worked had site managers thatwere responsible for about 100 personnel. However, problem solvingfor the various sectors was done using a centralized system for quickresolution of the issues.

Theagency problem that I noted in Northrop was communication between thetop levels and the employees. Most of the low level personnel feltlike every decision and strategy was implemented without theirconsideration. They felt that they also needed a voice to ensure thatevery aspect of the organization was handled without any conflict ofinterest (Brickley et al., 2016). The main concern was resourceallocation for the various sections. Some sectors felt like theylacked enough resources due to unequal distribution. If the issuepersists for long, the quality of products and services provided bythe organization will be affected negatively. The solution towardscontrolling the problem is to create a channel of communication fromthe bottom to the top levels. Once the employees begin to see thatthey have a means of airing their grievances, they will begin to feelappreciated. The management can also include several forums whereevery personnel meet to talk about issues that affect them andaffects the work they do. Several representatives from the lowerlevels can be elected to speak for the majority. The leadership ofthe organization has to ensure that every information that comes fromthe low levels is quickly assessed and a proper feedback is givenpromptly (Massey, 2015).

Thejob dimensions within Northrop were defined by skills, task identity,and experience (Brickley et al., 2016). All the senior supervisorsneeded to have all these qualities for them to secure such aposition. The main requirement was experience. I was able to become asite manager due to my vast experience of working in the aviationindustry. Experience is an obligation because many of the workers inthe organization have a military background. The management felt thatsuch a trait was vital due to the nature of operations that areperformed in the organization. They felt that a person who hasundergone military training is capable of making the right decisionseven under immense stress or pressure (Massey, 2015). The personnelwere grouped according to their skills and task identity. When itcame to the technical services sector, the employees had similarqualities. They were all skilled aviators, they had all served in theUS Air Force at a certain time, and they were able to pay attentionto minute details (Massey, 2015) . These qualities ensured that thejob they did was flawless. Every worker in my department pridedthemselves in their abilities and level of competence. These jobdimensions helped the organization find an easier time when they wererecruiting new employees because they could simply evaluate thecredentials of every candidate. I felt that the job design wasworking well for the company since every section had people withspecific talents grouped together. The notion behind grouping byfunction is highly effective because problems are solved rapidly dueto the availability of many intelligent minds (Brickley et al.,2016). The grouping also made the workers bond easily, thus, creatinga friendlier working environment. Task identity was another criterionused to design the different jobs. Workers that were fully aware ofthe job description and were quick to complete it were the mostpreferred. Such employees receive better wages than the ones thatlack such skills. The new workers were usually placed under acompetent veteran to guide them and teach them the ways of effectingany task efficiently. The job design, therefore, made theorganization to continue improving the quality of its products andservices while also minimize wastage of resources. I understood thatthe structure was appropriate for Northrop, however, there areimprovements that can be made. The job design could also includeautonomy (Brickley et al., 2016). Generally, every employee did theirtasks with minimal supervision while also making choices based ontheir understanding of the job. However, whenever they had to makemajor alterations to some operations, they had to be given the goahead by their immediate supervisor. This practice was meant toreduce the risk in case any of the workers made a gross error injudgement. Considering that all the workers selected to work forNorthrop are highly qualified and they have a lot of experience, themanagement should give them more trust (Massey, 2015). They should becapable to work and make decisions without any red tape involved. Ifthe organization incorporates autonomy into the design, a lot of timewasted when seeking permission will be recovered. The workers willalso feel appreciated and trusted. The trust will create loyalty forthe organization and the employees’ productivity will improvegreatly since they will feel that they are important to thecorporation. The strategy will eliminate any form of slackness or lowquality work.

Thecompensation package at Northrop Grumman Corporation is verylucrative for the executive members. They receive large annualsalaries based on their position in the company. The highest paidindividuals earn over 10 million US dollars per year (Strack et al.,2013). The top salary earner is the Chief Executive Officer thatearns about 35 million US dollars per annum (Strack et al., 2013).The other executives that are among the most paid include the twoChief Financial Officers and the Presidents of the InformationSystems and Technical Services (Strack et al., 2013). In addition tothe basic pay, these individuals also receive various annual bonusesthat are a percentage of the stock value. They also enjoy severalallowances and medical benefits. The employees receive a good paywith the lowest earner averaging about 60, 000 USD per year (Stracket al., 2013). The compensation system is based on various aspectssuch as competitive base salaries, annual merit increases, reward andappreciation programs, yearly bonus opportunities, and equity awards.Competitive base salaries is a strategy that ensures the employees atNorthrop earn more wages than the ones in rival companies. Theorganization boasts of having a better remuneration for its workersthan any other company that operates in the same line of business(Massey, 2015). Annual merit increases at Northrop entails anaddition to pay to every employee based on their productivity (Anken&amp Beasley, 2012). Thus, employees at the company are assured of agradual increase in their salary as long as they continue producingquality work. The reward and recognition program for Northropguarantees that employees who perform exceptionally are noted, andtheir achievements are appreciated (Anken &amp Beasley, 2012). Thesystem works using both monetary and non-monetary rewards.Recognitions such as “employee of the month” are very competitivesince every person works hard to attain such a title. The friendlycompetition confirms that productivity at Northrop never slows down.Another element of the compensation package for Northrop employees isthe annual bonus opportunities. Every worker is entitled to a bonusonce the financial year is over. These bonuses are a percentage ofthe profits and also correlates to the wages individual earns. Theemployees at Northrop also enjoy equity awards. These awards arenon-monetary (Anken &amp Beasley, 2012). A worker that has fulfilledsome requirements that were stipulated in their contract has theopportunity of receiving a share of the company as compensation. Themethod makes an employee own a part of the organization. In additionto all these compensation plans, workers at Northrop also receivecomprehensive medical cover. They also receive several paid vacationdays during the year. The compensation packages for all personnelinvolved with the company are highly effective. The executive membersare well compensated and the strategy ensures that Northrop attractsthe most qualified individuals for such a position. These talentedpeople are the ones who manage the company to ensure that its annualprofits continue to increase. When it comes to the employees, theyreceive higher pay at Northrop than any other workers at the samelevel in a different organization. By doing so, Northrop GrummanCorporation ensures that they have a wide selection of potentialemployees. The HR can, therefore, pick the best people to work forthe company. The yearly increases in the rate of pay motivates theworkers at Northrop to continue delivering quality products andservices. The annual bonuses, and reward and recognition programsmake the employees realize that their effort is appreciated. They aretherefore more loyal to the organization since they feel respected.Recognition programs also builds up friendly rivalry as every workerputs in more effort to improve their productivity. Chances of winningan equity award cements the bond between a worker and the entirecompany. Whenever they perform any task, they will feel like they arenot working for an organization, but they are working for themselvessince they are part of the company. The only improvement to thecompensation package for the employees would be to include an inhouse promotion system. Workers will have better job satisfactiononce they know that if they sacrifice their time for the company, thesacrifice will pay off as they rise up the corporate ladder (Anken &ampBeasley, 2012).


Anken,F., &amp Beasley, J. E. (2012). Corporate structure optimization formultinational companies.&nbspOmega,&nbsp40(2),230-243.

Brickley,J., Smith, C., &amp Zimmerman, J. (2016). Managerial Economics andOrganizational architecture (6th ed.)New York: McGrawHill/Irwin.&nbspISBN: 978-1-308-59318-0

Massey,D. L. (2015).&nbspAnalysisof the size, accessibility, and profitability of internationaldefense sales in times of US budget uncertainty&nbsp(Doctoraldissertation).

Strack,D., Fudem, H., Kuss, F., &amp Marsh, W. (2013). Northrop GrummanCorporation.&nbspDirectionsfor the Next Generation of MMIC Devices and Systems,105.

Close Menu