Organizational Challenge: Independent Contractors Essay

2269 Words Nov 25th, 2011 10 Pages
The Organizational Challenge: Independent Contractors
September 30, 2009

Table of Contents

Introduction……………………………………………………………………. 3
Background……………………………………………………………………. .4
Analysis………………………………………………………………………….6
Conclusion……………………………………………………………………….8
References……………………………………………………………………….9

Introduction “Culture” has become a common way of thinking about and describing an organization’s internal world--a way of differentiating one organization’s “personality” from another (Trevino, P-256)). Employees are brought into the organization’s culture through a process called socialization. Through socialization, employees are taught the ropes. Socialization can take place through formal training or mentoring, or through more
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Then we will provide a brief summary on the history of a private company called Xe, formally called Blackwater USA, who hired ICs to perform armed security for the Department of State in Iraq. Next, we will examine cultural problems that exist within a company like Xe. Before concluding, we will discuss how organizations might take a cultural change approach to improve their organization’s behavior.

Background
According to the Counsel on Accreditation (COA), an Independent Contractor (IC) is an employed individual who contracts with a program or organization to do a piece of work according to his/her own methods and is subject to an employer’s control only as to end product or final result of the work, not as to the means whereby it is to be accomplished (COA).
A business can pay an IC to accomplish only a specific task, allowing the business to get the specialized expertise for a short period -- without having to pay for the training. “The business enjoys mainly profit-related advantages by hiring an IC instead of an employee. For one thing, an employer need not provide an IC with vacation time, pension, insurance (less DBA overseas), or other costly benefits. Management costs that ordinarily go toward training and overseeing large numbers of employees decrease when ICs do the work. Some say that because ICs benefit directly from their hard work, the quality of their work may be

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