A government contractor refers to a private organization which signs contract with the government to produce goods as well as services for the government. The contracted company receives payment for the costs incurred plus its profit for the contract which are spelled out in the term of the contract. The contract is awarded to the lowest bidder by the government as provided for in the law that governs government contracts. Some contracts benefit certain societies that are sustained by the contracting activities through provision of direct or indirect employment by the federal government.
Organizational behavior of a company refers to the study and application of knowledge concerned with how individuals, people and groups act within the organization. It is concerned with the organization’s culture, diversity, communication, organizational efficiency and effectiveness; organizational learning that creates employees’ potential to meet the desired goals . Organizational effectiveness shows how well organized contractors perform (Miner, 2002, p. 29).
The organization’s management should create a kind of leadership that the employees are familiar with in order to avoid conflict. This should include understanding the employees’ goals as well as creating an interpersonal relationship since the most important goal of the contracted organization is to improve the performance of the employees, groups and organizations in order to meet the requirements of the contract that will satisfy the government. The environments within the company portray the underlying respect for the people as well as the diversity of the workforce.
Sometime the contracted company may decide to contract again the same contract to a sub contract. This means involvement of transferring the contract risks that also entail consideration of financial matters as well as examining the cost for risk adjustment. A deferent corporate culture which has a different behavior and perception may be developed to address the risk involved in the project, but this depends on the organizational size of the contracted company.
Research have indicated that small sized organizational contractors are more willing to take risks in returned tenders by government in order to keep on being competitive than their big sized organizational counter parts. Thus some major consideration should be made regarding potential variance of the costs if different sizes of contractors are used to price the risks in determining the aforesaid costs (Sims, 2002, p. 15). Through organizational community people share set of value, norms and perspectives hence creating some unique culture.
The organizational culture may include norms, values and informal beliefs that people hold in the organization. It is believed to dictate the activities as well as the behaviors that are important to creating a successful contracted organization Different contractor sizes have different form of organizational structures, behaviors, procedures as well as people and contacts. Government contractors that possess and sustain strong financial performance are known to possess some strong set of managerial value cores that indicates the manner in which they carry out their businesses.
This is carried out in accordance with the set rules and regulations for government contractors which the company must reorganize itself effectively to adopt them (Sims, 2002, p. 19) The contracted companies, once awarded with the contract should starts to review the program for compliance in order to ensure that it is in line with the rules demanding the contractors to come up with business ethics as well as the compliance programs.
The government contractor then prepares itself to suit with this program by preparing some written code of conduct and ethics given by the employees in addition to compliance to promotion that is in line with the code. Most of the contracting companies take duration of about one month after the contract is awarded to create the code of conduction and other ninety days to carry out training as well as awareness program and internal control system. Most organization do extent this duration and the deadline to dates that they feel they are satisfied with for preparation operations upon request from the government.
The rule in most cases does not have effect on most clients compliant. The organization further scrutinizes and double check on its codes of conduct to make sure that it meets regulation requirements. The codes of conducted by the contracted organizations are not a government wide requirement although it has some more clear rules that concern ethical and compliance conduct regarding contracts. These regulations concerns organizations that get contracts which is more that $5 million as well as more than 120 days of performance period.
Some organizations represent themselves to the contractor as small businesses to evade these regulations. The government contractors behave to present themselves with the highest degree of integrity as well as honesty. The employee business ethics and compliance training programme as well as the internal control system prepared by the contracting company must meet the following requirements; should be matching with the company’s size and addition of the company’s engagement with the federal government; should be able to enable timely discovery as well as disclosing conducts that are not proper with government contracts.
In addition to these the contracted company carries out the necessary measures to ensure that the required measures are put in place and executed properly (Miner, 2002, p. 37). The organization works on the internal control system in an appropriate manner which sees to it that the system is in line with the U. S. sentencing organizations’ guidelines. The company uses the internal control system to carry out periodic examination of the procedures, policies; practices related to the business and ensure that the internal control system is compliant with the contractor’s code as well as the contracting rules of the federal government.
It is also the duty of the contracted company to see to it that it has an internal reporting approach like hotline, where the employees can give report on any suspected misconduct. The efficiency of the company will also depend on the appropriate external and internal auditing system and the set misconduct disciplinary action. The organization must behave in way to accomplish this entire program for business ethics and conduct awareness in order to keep pace with the government’s requirements (Nelson, 2001, p. 12).
The behavior of the contracted company will dictate its relation with the contractor in which case if the company does not comply with this rules and regulations the government can withhold the contract payments or withdraw the award fee. duration which the government has determined non- compliance contractor. The contracted company’s failure to detect and report to the government any kind of misconduct of criminal nature by the employees, subcontractor or agent could cause a debarment, suspension of the contract.
Most government contracted companies do hire a qualified attorney or a legal counsel to assist in making decision on how the decision ill affect the organization as well as considering whether the company is covered by these rules (Nelson, 2001, pp. 24). References Miner B. John, 2002, Organizational Behavior: Theories and Analysis, Oxford, Oxford University Press, pp. 29, 37. Nelson R. Richard, 2001, the Nature and Dynamics of Organizational Capabilities, Oxford, Oxford University press, pp. 12, 24). Sims R. Ronald, 2002, Managing organizational Behavior, London, Quorum Books, pp. 15, 19.