Organizational Behavior Analysis Paper (Office of Financial Aid)

Organizational Behavior Analysis Paper Jason Clabaugh Indiana University of Pennsylvania Organizational management plays an extremely important function in higher education. It dictates how institutions are structured and governed, how policies are formed, and gives a framework for departments to measure the importance of their relationship to the institution. This paper will use multiple lenses and provide an organizational analysis of the Financial Aid office at Indiana University of Pennsylvania. It will include a discussion of mission, goals and objectives, departmental relationships, leadership, multicultural competence, the department’s relationship with students, work environment and atmosphere, and departmental resources. The paper will conclude with objective recommendations and a rationale for improving both goal and relationship achievement. Mission, Goals & Objectives, Accountability Indiana University of Pennsylvania uses the bureaucratic model of management. Characteristic of this type of management, the university operates on a hierarchical system in which most of the power is located at the top and then funneled down to individual offices and managers as appropriate. The division of Student Affairs has a mission statement which reads “The IUP Student Affairs Division promotes and enhances student success and personal development by collaboratively and strategically creating and leading programs and services, which advocate for and respond to the broad spectrum of student needs, interests, and aspirations” (as cited in the IUP strategic plan, 2008, p.8). The student affairs division has put into place a Student Affairs Leadership Team (SALT) which is comprised of the director/coordinator of each office within the unit. Each office operating under the division mission statement has specific goals and objectives which are handed down to the department based on functionality and the services provided to students. Individual units then craft a unique mission statement indicating to students, faculty, staff, and constituents of the institution the purpose for their existence and what kinds of information and services they can expect to receive. While the university as a whole operates on a bureaucratic model, each individual director or coordinator has the ability to choose how they want to run their office. The Financial Aid office itself uses the collegial model which according to Ambler (2000) “values the participation of all members of the enterprise in the decision making process of establishing the office mission and goal statement” (p. 123). This is evidenced by the fact that the director values the participation of each and every one of her staff members. Staff members are held responsible for meeting the standards of individual, office, and divisional goals. Employee’s ability to meet those goals is then discussed in a yearly performance evaluation. For example, an office goal which all staff may be responsible for might include providing correct and accurate financial aid information when counseling students. In contrast, an individual goal for a staff member on the loan processing team might be: effectively transitioned from the Family Federal Education Loan (FFEL) program to the Direct Lending program (DL) in a smooth and accurate manner. Both the individual and office goal tie back to the divisional mission statement which indicates that it …“provides programs and services that respond to a broad spectrum of student needs.” Goals and objectives for the office are established by both the Vice President for Student Affairs and the Vice President for Enrollment Management. At the end of the year, the director has to write a narrative describing how she and her staff met the goals and objectives set forth by the division. The director’s ability to meet the division goals and objectives ties into her yearly performance evaluation. All things combined create the chain of accountability for the office. Relationships, Leadership, and Multicultural Competence Group communications and staff relationships run smoothly in the financial aid office. Staff members work individually however; they can also come together and work very well as a team. For example, even though our directors work independently on specific portions of the financial aid process, some offices don’t use that model. This past November, a representative from Slippery Rock University came to visit because they are transitioning to the computer system that our office uses. Because of effective communication skills and practices, even though each director is segmented they were able to come together as a team and communicate the change process seamlessly for the staff member from Slippery Rock. No one is afraid to voice their opinions or ask for things that they may need or want. Most often, I find that staff members are in each other’s offices talking with one another whether it be concerning a financial aid issue or just catching up on life. The time spent communicating whether it is on a personal or professional level helps create a deep and lasting relationship which makes the work place more enjoyable. The director makes sure to keep everyone up to date on the information they need through both e-mail and face to face communication. I don’t get a sense that any one member of the staff has animosity towards another in part because the director, who has a master’s degree in human resource management. She truly understands the human element in her staff. Bunis (2006) explains that: “No two people will interpret the interaction and react to it in the same way. Like it or not, every message an individual hears or reads is filtered through a particular personality, style preferences, learning style preferences, feelings of adequacy or inadequacy, and whatever hopes, fears, and desires may be most prominent on a particular day” (p.44). The director’s ability to influence affects productivity and relationships in the office by noticing and making adjustments based on the human element of her staff, and the flexibility of her management style. Sometimes she will use the directive approach because she knows that her staff members trust her however, most of the time she uses the participative approach and taps the knowledge of her staff, while keeping her eye not only what needs to be accomplished in the present but also the future. She takes the time to reflect and think about how to motivate her staff and get them on board with her ideas first and then puts those ideas into action. It is a leader that can make people come together and work towards a common goal and the director of financial aid certainly has that ability. Staff evaluations are conducted on a yearly basis by the director in coordination with the human resources office. The evaluation form is set up with a list of performance factors and a rating scale. Cramer & Janosik (2003) suggest that “the behaviorally anchored rating scale approach is favored for use in student affairs divisions” (p. 135). Brown (1988) also reports that “these scales use words or phrases to identify the degree to which the behavior or characteristic is present in the person being rated. These types of scales are most effective in evaluating the different performance dimensions” (as cited in Cramer & Janosik, 2003, p. 135). After the director completes her portion of the performance evaluation she emails it to the staff member. The staff member is then asked to review the appraisal and schedule a meeting. At the meeting the performance appraisal is reviewed. If the staff member agrees with the review it is signed and sent to human resources. However, if the person is not happy with the evaluation, the director will give the employee an opportunity to discuss what they think needs to be changed and why. If the director agrees with the staff member about the change the feedback is corrected. By allowing the staff member to voice their opinions about the evaluations, it raises their level of trust and once again shows that their opinion and work are valued. Drath (1998) says “the future of leadership lies in realizing that leadership comes from all around, that it is a reciprocal relationship among group members who seek to make meaning together in their shared experience” (as cited in Woodward Jr., Love, & Komives, 2000, p. 83). This statement couldn’t speak more loudly to the leadership skills that are evidenced in the Financial Aid Office. Every single person on the staff whether it is the support staff or a director works together to make sure that the work gets done. Several of the directors were away at a conference for two weeks and an employee resigned before the holiday. The rest of the staff worked over those two weeks to make sure that the office ran smoothly and that quality and process were not affected by a lack of resources. That is truly a sign of great leadership. If I had to define a leadership style for the financial aid office I would define it as working reflectively smarter. According to Woodward et al. (1999) this is described as “taking a step back and notice ourselves noticing” (p.85). I believe that every staff member truly appreciates what they do for themselves and each other in order to keep the process flowing. They take the time to notice what others are doing on a daily basis. It is because of positive management style that this office not only works hard but works smart which makes getting the job done a lot easier. As it stands right now, there is a need for additional staff members in the financial aid office. The customer service coordinator resigned a short time ago which has caused a need to reassign her work to other staff members until the position can be filled. Her duties which included the student academic progress appeals process, the Office of Vocational Rehabilitation, FAFSA corrections, and spring packaging have all been reassigned to various members within the office. Due to the nature of how many students the office serves and the workload it is in the best interest of the office to try and fill that position. Because each director specifically focuses on their own financial aid programs, which take up the majority of their time to burden them with customer service issues would affect the quality of the office’s work and staff morale. In the meantime, the staff members that have had duties added to their already full plates were happy to take them on in order to keep the office running smoothly which is another example of the quality of leadership and the willingness of the individuals to make sure that service to the student doesn’t suffer. Pope, Reynolds, and Mueller (2004) define multicultural competence as an “understanding of a particular awareness, knowledge, and skills that are needed to work with others who are culturally different from one’s self” (p.28). Unfortunately this is one area in which the financial aid office lacks. Of the 13.5 staff members there is only one individual of color and/or ethnic background. That is not to say that other staff members are not sensitive to students in this area. However, students often identify with staff members who are similar to them culturally or otherwise. I asked several staff members in the office why the level of diversity is so low. All the responses I received were similar. They indicated that most applicants who seek positions in financial aid are “white women.” It most certainly is not because of a lack of trying to locate candidates. Given that is the case, the staff needs to work extra hard to make sure that they are meeting the needs of all students effectively. A training session in conjunction with the office of student equity and engagement is well worth considering. Relationships with Students Staff members within the financial aid office relate well with the students they serve. Currently, the office is set up to serve students at a service counter on the first floor of Clark Hall. The counter is always staffed with a full-time director and the occasional student worker. This helps with the accuracy of information that students are receiving. If a student has a question about their financial aid, they come to the counter first. If the staff member at the counter can’t answer the question the student is referred to the appropriate director. If the director is unavailable, students are given the phone number and/or email address of the director and asked to make an appointment. The office staff does a great job in making sure they are available. Finances and money are often a topic students don’t want or like to talk about (either because they are financially illiterate, or they are dealing with personal issues) sometimes that creates a barrier between the office and the students. The office often sees a lot of students whose parents refuse to give them any money for school even though the federal government feels that it is the parents and the student’s responsibility to pay for a college education. The staff works hard to make sure that student questions get answered but also make sure they are available counsel students if needed. One area where students seem to get frustrated with the office is paperwork processing. Students don’t understand why the office can’t resolve for example, a PHEAA income verification question or communicate directly with a lender. The directors explain to students that the state of Pennsylvania or even a private lender has requested information and there is nothing our office can do to satisfy the situation until the outside agencies receive the information requested. The directors work hard to be both courteous and as sensitive as possible with students in explaining how the financial aid process works. The office does try to make a relationship with the student from the beginning of their education at IUP. Financial Aid staff members do presentations on the various types of aid that are available at IUP and what the process is for filling out all of the paperwork on time during summer orientation sessions. In fact, a good relationship with the financial aid office is one of the most important ones a student can have. Students are expected to take responsibility and understand that they have certain deadlines to meet. If these deadlines are not met it can and often does affect their financial aid eligibility which determines whether or not they are able to stay in school. The financial aid office goes out of its way (as much as time and scope allows) to see that students understand both their rights as well as their responsibilities in order to make them as knowledgeable about finances as possible. As stated in the office mission statement “ the financial aid office is committed to providing financial resource information and services to their families while also maintaining responsible stewardship of the funds entrusted to the university. As members of the IUP community the office strives to collaborate with other campus offices and external organizations to assist in promoting educational access” (IUP, 2009). It is in the best interest of the financial aid office to see that students are able to pay for education and complete their degrees. Environment The general atmosphere of the work environment in the financial aid office is very laid back and relaxing. However, staff members are expected to exhibit a professional demeanor in terms of attitude and to dress professionally at all times. The attitude and look of the staff reflect on the institution as a whole. Employees are very cordial and friendly with one another which make the office an enjoyable place to work. The office is divided in half with two long hallways of offices on either side. Part of our office space is shared with the Office of Finance and Administration. Each staff member is fortunate enough to have his or her own office. This is extremely important when counseling students on the financial aid process as it provides a way to keep information and circumstances private if necessary. There is also a kitchen/dining area to use at leisure, as well as a conference room for large meetings or gatherings. Speaking to the physical environment, the office is located in Clark Hall which was completely renovated and repainted about ten years ago. The building has been updated and modernized as well as made accessible to students with disabilities. It looks appealing both inside and out. People who enjoy the space they work in often get more done in an efficient manner. Budget/Resources The budget for the Financial Aid office is approximately $114,000 per year and is adequate for the size of the office. The budget year runs from July 1 of the current year to June 30 of the following year. The office uses an institutionalized budget and salaries are not a factor because they come directly from the state of Pennsylvania. The director of the office is responsible for all matters concerning the budget. It cover’s office supplies, equipment purchases, state work study students, some professional development activities, mailing, postage, the printing of necessary forms for use by students, as well as miscellaneous expenditures. If supplies are needed they must be ordered through the universities central stores department and the request must be approved by the budget director before the goods are received. A large part of the budget in financial aid is used to ensure that there is money available to pay student workers due to the number of students that the office serves. The director takes the time to monitor the budget ensuring that students work at “peak” times during the academic year. Her philosophy is that you can’t just have warm bodies in a chair. During this past academic year (08-09) the director came within $200 (in the black) of her yearly mark. This demonstrates a high amount of fiscal responsibility. The director indicated that she really begins to watch the budget closely from the beginning of March onward. This is the time of year where she is looking at what she has spent and what she still need to spend until next year’s budget is passed. If there does happen to be money left over in the budget most often times the vice president for student affairs allows the office to keep it and add it to the next year’s budget. Barr (2009) says “The financial health of the institution is predicted on the aggregate financial health of all the units within an institution. The ability to translate information to those within a unit and to decision makers within the institution is a key factor to the success of budget managers” (p. 504). The director of financial aid certainly understands and translates information to the best of her ability to make sure her unit stays financially healthy. Recommendations and Rationale In concluding my organizational analysis of the financial aid office I will offer a set of objective recommendations and rationale that the office could use to improve itself in meeting the goals of the organization and its service to students. The first recommendation would be cross training of staff members. The work flow within the office is very segmented. Each individual director has responsibilities. Currently, there isn’t anyone in the office who could pick up the missing staff member’s work if necessary. For example, if Erin Fritz, who runs a number of the scholarship programs in the office, were ill for an extended period of time no one else would know how to do her job. Being an effective practitioner/leader means creating an environment in which your staff can maximize their potential. According to Bunis (2006) “Think of staff members as adult learners who want to grow and reach their full professional potential. Don’t let an administrative title define who you are” (p.54). Having such segmented work makes flexibility almost impossible. A second recommendation for the Financial Aid office is to take this opportunity with a staff member departure to reexamine group processes or “how the group is going about achieving formal tasks” (Gabarro & Harlan, 1992, p. 279). I believe that to be an effective office/organization one needs to make the most of every opportunity that is presented to them. As such, I believe the staff should take this time, when they are absent a staff member to re-examine their current group processes and integrate their findings with recommendation number one cross training. Third, while I am recommending the need for staff members to re-examine the group process and take this opportunity to cross-train, I am also going to advocate for two new positions in the office. I believe these new positions will improve the service the office provides to its students. Position number one is a financial aid technical manager. The person in this position would be responsible for managing all technical aspects of the BANNER software and integrating and designing new programs/patches as the need arises. By being familiar with both the administrative and technical aspects of financial aid the process would run smoother because the need to wait for IT to create a solution would be eliminated. The second new position would be a financial literacy coordinator. One of the things which was mentioned to me during staff interviews was that because there is so much work to do in the office the staff does not have time to reach out to the student unless they specifically seek assistance. The person in this position would design and develop presentations relating to financial aid borrowing and literacy as well as everyday money management in order to effectively help students make the right decisions when it comes to borrowing money for school. The outreach position would most definitely fit in with the student affair’s division’s mission which is to “serve a wide variety of student needs.” I believe that it would also remove some of the barriers that students face in communicating with the office regarding filling out the right forms, knowing know to contact to get appropriate information, and overall just being more savvy about the process in general. Winston & Cramer (1997) state “organizations must have a clear sense of purpose and understand how each position contributes to the accomplishment of that purpose (p.143). Right now, I feel that the purpose is to just get the work done. Understanding that budget issues exist with the hiring of staff, perhaps the customer service coordinator position (recently vacated) could be combined with the literacy counselor and both positions together could be made into one State University Administrator 2 position. A final recommendation I would make for the financial aid office is to do everything within their power to become more racially and ethically proportionate in terms of their staff members. Until that task can be accomplished, I recommend attending several different diversity workshops every year for current staff in order to keep abreast of our student population and meet their needs to the best of the office’s abilities. Overall, after completing my analysis of the financial aid office at Indiana University of Pennsylvania, I believe the office runs efficiently and effectively given the resources that are provided to them. Often, an outsider looking in can help determine if changes are necessary or provide advice on how to make improvements to the organization/office as a whole, which is exactly what this paper sets out to do. I believe that the recommendations I have outlined above would improve service to students while allowing the office to exceed even further at meeting the goals and objectives of the organizational and division mission statement. References Ambler, D.A. (2000). Organizational and administrative models. In M.J. Barr & M.K. Desler and Associates The handbook of student affairs administration. San Francisco: Jossey-Bass. Barr, M.J. (2009). Budgeting and fiscal management for student affairs. In G.S. McClellan & J. Stringer and Associates The handbook of student affairs administration. San Francisco: Jossey- Bass Bunis, O. (2006). Managing the registrar’s office. In B. Lauren (ed.) The registrar’s guide: Evolving best practices in records and registration. Washington DC: AACRO Cramer, D.G. & Janosik, S.M. (2003). Performance appraisal: Accountability that leads to professional development. In S.M. Janosik, D.G. Cramer, J.B. Hirt, R.B. Winston, S.A. Saunders & D.L. Cooper Supervising new professionals in student affairs New York, NY: Brunner Routledge. Gabarro, J.J. & Harlan, A. (1992). Understanding and influencing group process. In J.J. Gabarro (Ed.) Managing people in organizations. Boston MA: Harvard Business School Publications. IUP, (2009). About financial aid. Retrieved December 7, 2009. from http://www.iup.edu/financialaid/about/default.aspx IUP, (2008). IUP strategic plan: Advancing a legacy of excellence. Indiana PA: Indiana University of Pennsylvania. Pope, R. L., Reynolds, A. L., Mueller, J. A., & Cheatham, H. E. (2004).Multicultural competence in student affairs. San Francisco, CA: Jossey Bass. Winston, R.B. & Cramer, D.G. (1997). Recruitment and selection of staff. In R.B. Winston & D.G. Cramer Improving staffing practices in student affairs. San Francisco: Jossey-Bass. Woodward D.B. Jr., Love, P., and Komives, S.R., (2000). Leadership. Leadership and management issues for a new century New Directions for Student Services, No. 92. San Francisco: Jossey-Bass. PAGE 1 Running head: Organizational Behavior Analysis Paper