ription is approved, the MD would discuss the salary with the accountant who would determine whether the cost is within the company budget. The interviewing process would be led by the sales department who must select the best candidate in order to have an employee who helps to optimize company performance. Once they chose the successful candidate, the MD must sign off. He would then direct the HR administrator to create a contract and complete the necessary paperwork. Once the new hire starts, the MD would instruct the book keeper to make payments to the recruitment company and HR administrator as well as to add the new employee to the payroll. This process requires effective communication.

How the Culture of MPI Brokers Affects its Operations

The formal organisational culture is a power culture, as described by the Charles Handy model (Handy, 1993). As MPI is a small company owned by the MD, he has the final say in all decisions that are made. The formal culture, however, is not reflective of the informal culture. The informal culture is a close, friendly and supportive environment in which employees take a genuine interest in their co-workers lives. The co-workers are effective at communication, help each other solve queries and are receptive to new ideas. There is a clash between these two cultures. On the one hand, the MD is the centre of power who wants to have authority and control of all significant workplace decisions. However, his outlook differs to that of the other employees. This leads to tension and inefficiency within the company because the MD prefers the ‘old fashioned way’ while the rest of his staff work hard to try to move the company forward. These staff efforts are usually under appreciated and not given proper consideration which leads to lower workplace involvement.

While employees are generally happy in the office due to positive relationships with co-workers, it is not uncommon to hear negative comments regarding leadership management style. As the HR function is outsourced and is typically only used for creating documents etc., there is no HR capability within the company to improve this issue. Therefore, this is s