Blue flowers (Pvt.) Ltd Essay

executive summary downcast f busteders (Pvt.) Ltd is an artificial flower manufacturing compevery situated in Monaragala with 350 total workforces. It provides artificial flowers for topical anaesthetic and international markets. This has five functional departments namely Purchasing, Sales and Marketing, Production, Accounting and HR. They got a decision to affix employment in 14% by last year onwards and an inducement course to a fault work throughed. When the carder earns more(prenominal) than the original physical object, company granted 10%-15% additional inducement. after 6 months company had evaluate their pros and cons and results was as follows, Production change magnitude1st month 20%2nd month-30%3rd month-32%4th month-20%5th month-20%sixth month-20%Lower Quality and Rejection Rate 10%-15%After implementing this fillip program deed employees complained that the reason of this job is the slowness of other departments, and also 60% production employees were complained their objections through their Trade Unions. After that TUs called a encounter to its members. 60% employees said that this is non an incentive scheme however just another way of exploiting persistence and they suggested a TU action. because TU representatives met management and informed them that this incentive scheme is not lucrative or equitable. that management said that if they are not in a position to carter to this increase in golf-club in the future, they are in for a fundamental loss and as a result they efficiency even consider an employee redundancy plan also. After this meeting trade unions requested some conditions also. fuss StatementIn this contingency we sess give away several Management issues which influenced for the smooth functioning of the company. Those issues as followsIssue 1Organization decided to increase their production and implement an incentive program for employees who had produce more than the original signal assumption.But th ey did not screen the internal and foreign environment out front implement this production and incentive scheme. They did not done feasibility study, SWOT analysis or a PESTEL.Issue 2 on that point was no any alive(predicate)ness program for employees about those production targets and incentive schemes. There was no any target group identification or Job evaluation. Incentive was excreten without any Performance evaluation on that pointfore other department people (Other than Production dept.) were jazzed more of this incentive scheme.Issue 3Incentive scheme was not lucrative and not equitable. And also it was not conducted in a seemly manner. Lower level workers were not reaping any benefits of this incentive scheme.Issue 4 spread outn target is not SMART (Specific, Measurable, Achievable, Realistic, Time bound) They only announced to employees that production must be increased by 14%. They did not specify individual remnants and objectives or Team goals and objectives. Th ey express arrangingal goal and tried to arrive at it through an incentive scheme. They should give to inform employees through a job description but they didnt.Issue 5Some managers and supervisors considered employees as simple machines. Also at that place were biasness in branding low quality and product rejections. In the meeting which held between management and Trade Unions management said that if employees were not in a position to this increase in order in the future, they were in for a heavy loss as a result they might even consider an employee redundancy plan also.There was no any interrelationship between management and employees. Management implements decisions without having employees collaboration. Therefore Trade Unions nooky influence.Recommendations with Literature ReviewIssue 1There was no any feasibility study. No any internal or external environmental study. Both internal and external environmental factors are astray influence for the governanceal functi ons. Before take any strategic decision systemal management should regard the internal and external environment. In this case governing body is overtaking to increase their production through incentive schemes. That means this governance is going to develop. Organizational development is all about improving organizations surgical operation. But this transaction development should be done by facing internal and external environmental changes. To do this organization should cream the internal and external environment. For internal read organization should implement SWOT analysis and for external scan organization should implement PEST analysis. SWOTPESTFigure 1In this case before implement the decision of product increment and incentive scheme organization should pass on to scan environmental factors. First of all whether existing employees are sufficient for replete this current target, if not organization should recruit additional employees to fulfill this target. If exis ting workforce is sufficient they should have being given a proper Training to do new job well. Existing employees. (Job rotation, Job enrichment, Job enlargement, Training and Development, Promotions etc.) outside(a) employees. (Just in time talent, Identify talent pool, Attract, Gain, Retain) Not only that but also organization should have to conduct a feasibility study. They should scan whether existing technology is enough whether existing machinery or machine capacity is sufficient whether raw material supply is converge the given target etc. After scanning those types of internal factors organization should scan external factors also. In this case glooming Flowers did not scan anything about environment they just announced a target and told employees to fulfill it.Issue 2No target groups, Awareness program, Job evaluation and Performance appraisals Before implement an incentive scheme organization should have topoint out which group has being given the target. It lead be he lpful to give incentives for employees who actually meet targets. tally to this case Production Department employees are the target group. By identifying the target group correctly other department people will not be able to enjoy incentives without performing towards the target. After identifying the target group organization should inform them about what to do? How to do? When to do? Which benefits can master through the target?This can be done through conducting an awareness program or an inauguration. And also the target group can be informing by a proper job description. Not only the target group but also the other department employees also should clarify according to the target to achieve and they also inform by proper job descriptions. Then organization should conduct a Job Evaluation to grade jobs according to its worth. Job evaluation is a systematic comparison done in order to determine the worth of one job coitus to another.It provides a basis for grading and pull ine s pay structure. After identifying the grades pay structure should established. And the incentive scheme should dress with the Evaluation and target group should have being given more worth. According to this case although Blue Flowers implement an incentive scheme they did not conduct any Performance Evaluation program. Through PM organization can measure Actual performance of employees and can compare it with expected performance. Through this criterion organization can identify richly performers and low performance and make rewards or punishments.Issue 3Incentive scheme was not lucrative and not equitable.According to this case Incentive scheme was not lucrative or equitable. As production people mentioned other department employees enjoy more of this incentives. As I express in issue 2 it can be prevent by target group identification. Proper awareness, Job evaluation and Performance Appraisal based incentives. According to this case organization can introduce Group Incentive Scheme. Group Incentive Schemes are targeted at improving performance levels or the output among a group of employees. This is like an individual incentive scheme but give pay over and to a higher place base salary to all group up members when the group or team collectively meets specified standards for performance, productivity or other work related behavior. Blue flowersare going to increase production by 40%.They can introduce targets to Production team, Accounts team, Sales team, HR team and purchasing team. Then organization can introduce incentive schemes for separate departments as per its worth. But there is a disadvantage. By providing team incentives some employees can enjoy incentives without performing towards target. To prevent this organization can introduce individual performance appraisal system also and they can reward high performers and identify low performers. This will be reduce demotivation of high performers, reduce tardiness, reduce LTO, and mainly can ac hieve the target efficiency and effectively. Organization also can use motivation theories for implement sound incentive scheme. Basically organization can use Two Factor guess by Fredric Herzberg, Vrooms Expectancy Theory and Goal setting theory.Two Factor TheoryHerzberg view that man lives at two levels, physical and psychological level. Several factors lead to employee satisfaction while the other lead to dissatisfaction the satisfiers are called Motivators and the dissatisfies are called hygienics factors. Motivators appeared to produce motivated behavior and hygiene factors produced dissatisfaction.Vrooms Expectancy TheoryThis says that an employee will be motivated to hold a high level of effort when he believes that effort will lead to a exhaustively performance appraisal that a good appraisal will lead to organizational rewards and that rewards will satisfy the employees personal goals. This theory emphasize that motivation begins with a desire for something.Goal Setting TheoryAccording to this theory, a person get motivated by following thingsThe goal should be SMARTThey should be challenging but reachableGoals are seen as bring together and reasonableIndividual participation in goal-settingFeedback ensures that people get a feeling of pride and satisfaction from the experience of achieving a challenging but fair goalFeedback is used to gain commitment to even higher goalAfter evaluating above factors organization can take following steps1. Identify the objective properly2. Consult with lag and trade unions3. Relate the scheme to the business remuneration system4. Ensure that the planned scheme is hawkish5. Decide on performance measures for organizational staff6. Regular review and obtain feedbacksIssue 4Target was not SMARTAccording to this case the given target was not SMART. All organizations have their corporate targets. Those targets are divided into sections and assigned individual departments with those divided targets. Then those indivi dual departments assigned departmental target among their department members. Those are calls individual targets. Those individual targets and departmental targets should fulfill through strategic plans, and those decisions which implement to achieve departmental targets should always align with the corporate target.ExFigure 2When an organization establish a target it should be SMART (Specific, Measurable, Achievable, Realistic, Time bound) and also it should be structured with performance, conditions and standards. Ex production team should produce 10000 flowers individually, 100% accurately inwardly a given day within given machine capacity.Issue 5Biasness of managers and supervisors. No interrelationship among management and employees In this case there was no any interrelationship among management and employees. Some managers/supervisors consider employee as machines and they reject production or brand as low quality as their wish. This is no fair and conflicts, high LTO, high absenteeism, high tardiness can be happened The best theory for the Human Relation is Hawthorne Studies. Elton Mayo was the founder and he did a research in Western Electricals. He searches how the lightning and illumination affect to the workerperformance. From this research he founded that valet de chambres relations can affect worker performance rather than physical conditions. We all are human being. We all are pleased to have pleasant relationships.It is a psychological need. In an organization if there are so many good physical conditions but no interrelationship between employer and employee that organization will not be able to achieve its desirable targets. According to this case thre was no interrelationship between employees and management and also biasness was there. As a result employees were get together with Trade Unions for gain their rights. That was a huge disadvantage for an organization. And also in the meeting with TUs management stance that if employees enabl e to fulfill targets on time they will be implement a redundancy program. That was not suitable and a point of conflict. To prevent this situation organization canImplement Soft Skill programs for managers and supervisors.Maintain fair welfare programs.Implement Participative Management System.Make standard level of production quality and make aware employees about that.Then rejection and low quality branding will not be bias.ConclusionBlue Flowers (Pvt.) ltd is a leading artificial flower manufacturer which provides artificial flowers for local and foreign markets. They desired to increase their production by minimum 40% but faced problems because of poor environmental awareness, poor targets, and woebegone incentives. If Blue flowers follow sound incentive system through a strategic plan they will never become unsuccessful in gaining 40% production increment.