Executive sum-up

Blue flowers ( Pvt. ) Ltd is an unreal flower fabricating company situated in Monaragala with 350 entire work forces. It provides unreal flowers for local and international markets. This has five functional sections viz. Buying. Gross saless and Selling. Production. Accounting and HR. They got a determination to increase production in 14 % by last twelvemonth onwards and an inducement plan besides implemented. When the carder produces more than the original mark. company granted 10 % -15 % extra inducement. After 6 months company had evaluate their pros and cons and consequences was as follows. Production increased

1st month – 20 %
2nd month-30 %
3rd month-32 %
4th month-20 %
5th month-20 %
6th month-20 %
Lower Quality and Rejection Rate – 10 % -15 %

After implementing this incentive plan production employees complained that the ground of this job is the awkwardness of other sections. and besides 60 % production employees were complained their expostulations through their Trade Unions. After that TUs called a meeting to its members. 60 % employees said that this is non an incentive strategy but merely another manner of working labour and they suggested a TU action. Then TU representatives met direction and informed them that this incentive strategy is non moneymaking or just. But direction said that if they are non in a place to carter to this addition in order in the hereafter. they are in for a heavy loss and as a consequence they might even see an employee redundancy program besides. After this meeting trade brotherhoods requested some conditions besides.

Problem Statement

In this instance we can place several Management issues which influenced for the smooth operation of the company. Those issues as follows ;

Issue 1

Organization decided to increase their production and implement an inducement plan for employees who had produce more than the original mark given. But they did non test the internal and external environment before implement this production and incentive strategy. They did non done feasibleness survey. SWOT analysis or a PESTEL.

Issue 2

There was no any awareness plan for employees about those production marks and incentive strategies. There was no any mark group designation or Job rating. Incentive was given without any Performance rating hence other section people ( Other than Production dept. ) were enjoyed more of this incentive strategy.

Issue 3

Incentive strategy was non moneymaking and non just. And besides it was non conducted in a proper mode. Lower degree workers were non harvesting any benefits of this incentive strategy.

Issue 4

Given mark is non SMART ( Specific. Measurable. Achievable. Realistic. Time edge ) They merely announced to employees that production must be increased by 14 % . They did non stipulate single ends and aims or Team ends and aims. They express organisational end and tried to accomplish it through an incentive strategy. They should hold to inform employees through a occupation description but they didn’t.

Issue 5

Some directors and supervisors considered employees as machines. Besides there were biasness in branding low quality and merchandise rejections. In the meeting which held between direction and Trade Unions direction said that if employees were non in a place to this addition in order in the hereafter. they were in for a heavy loss as a consequence they might even see an employee redundancy program besides.

There was no any interrelatedness between direction and employees. Management implements determinations without holding employee’s coaction. Therefore Trade Unions can act upon.

Recommendations with Literature Review
Issue 1

There was no any feasibleness survey. No any internal or external environmental survey. Both internal and external environmental factors are widely influence for the organisational maps. Before take any strategic determination organisational direction should scan the internal and external environment. In this instance organisation is traveling to increase their production through incentive strategies. That means this organisation is traveling to develop. Organizational development is all about bettering organisations public presentation. But this public presentation development should be done by confronting internal and external environmental alterations. To make this organisation should scan the internal and external environment. For internal scan organisation should implement SWOT analysis and for external scan organisation should implement PEST analysis. Swot

Plague

Figure 1

In this instance before implement the determination of merchandise increase and incentive strategy organisation should hold to scan environmental factors. First of all whether bing employees are sufficient for fulfill this current mark. if non organisation should enroll extra employees to carry through this mark. If bing work force is sufficient they should hold being given a proper Training to make new occupation good. Existing employees. ( Job rotary motion. Job enrichment. Job enlargement. Training and Development. Promotions etc. )

External employees. ( Just in clip endowment. Identify talent pool. Attract. Gain. Retain ) Not merely that but besides organisation should hold to carry on a feasibleness survey. They should scan whether bing engineering is adequate whether bing machinery or machine capacity is sufficient whether natural stuff supply is satisfy the given mark etc. After scanning those types of internal factors organisation should scan external factors besides. In this instance Blue Flowers did non scan anything about environment they merely announced a mark and told employees to carry through it.

Issue 2

No mark groups. Awareness plan. Job rating and Performance assessments Before implement an incentive strategy organisation should hold to
point out which group has being given the mark. It will be helpful to give inducements for employees who really fitting marks. Harmonizing to this instance Production Department employees are the mark group. By placing the mark group right other section people will non be able to bask inducements without executing towards the mark. After placing the mark group organisation should inform them about what to make? How to make? When to make? Which benefits can derive through the mark?

This can be done through carry oning an awareness plan or an startup. And besides the mark group can be informing by a proper occupation description. Not merely the mark group but besides the other section employees besides should clear up harmonizing to the mark to accomplish and they besides inform by proper occupation descriptions. Then organisation should carry on a Job Evaluation to rate occupations harmonizing to its worth. Job rating is a systematic comparing done in order to find the worth of one occupation comparative to another.

It provides a footing for rating and establishes pay construction. After placing the classs pay construction should set up. And the incentive strategy should aline with the Evaluation and aim group should hold being given more deserving. Harmonizing to this instance although Blue Flowers implement an incentive strategy they did non carry on any Performance Evaluation plan. Through PM organisation can mensurate Actual public presentation of employees and can compare it with expected public presentation. Through this measurement organisation can place high performing artists and low public presentation and do wagess or penalties.

Issue 3
Incentive strategy was non moneymaking and non just.

Harmonizing to this instance Incentive strategy was non moneymaking or just. As production people mentioned other section employees enjoy more of this inducements. As I express in issue 2 it can be prevent by mark group designation. Proper consciousness. Job rating and Performance Appraisal based inducements. Harmonizing to this instance organisation can present Group Incentive Scheme. Group Incentive Schemes are targeted at bettering public presentation degrees or the end product among a group of employees. This is like an single inducement strategy but give wage over and above base wage to all squad members when the group or squad jointly meets specified criterions for public presentation. productiveness or other work related behavior. Blue flowers are traveling to increase production by 40 % .

They can present marks to Production squad. Histories squad. Gross saless squad. HR squad and buying squad. Then organisation can present incentive strategies for separate sections as per its worth. But there is a disadvantage. By supplying squad incentives some employees can bask inducements without executing towards mark. To forestall this organisation can present single public presentation assessment system besides and they can honor high performing artists and place low performing artists. This will be cut down demotivation of high performing artists. cut down tardiness. cut down LTO. and chiefly can accomplish the mark efficiency and efficaciously. Organization besides can utilize motive theories for implement sound incentive strategy. Basically organisation can utilize Two Factor Theory by Fredric Herzberg. Vrooms Expectancy Theory and Goal puting theory.

Two Factor Theory

Herzberg position that adult male lives at two degrees. physical and psychological degree. Several factors lead to employee satisfaction while the other lead to dissatisfaction the satisfiers are called Incentives and the dissatisfies are called Hygiene factors. Incentives appeared to bring forth motivated behaviour and hygiene factors produced dissatisfaction.

Vrooms Expectancy Theory

This says that an employee will be motivated to exercise a high degree of attempt when he believes that attempt will take to a good public presentation assessment ; that a good assessment will take to organisational wagess and that wagess will fulfill the employees’ personal ends. This theory stress that motive begins with a desire for something.

Goal Setting Theory

Harmonizing to this theory. a individual get motivated by following things
The end should be SMART
They should be disputing but approachable
Goals are seen as just and sensible
Individual engagement in goal-setting
Feedback ensures that people get a feeling of pride and satisfaction from the experience of accomplishing a challenging but just end
Feedback is used to derive committedness to even higher end
After measuring above factors organisation can take undermentioned stairss ;
1. Identify the nonsubjective properly
2. Consult with staff and trade brotherhoods
3. Associate the strategy to the concern wage system
4. Ensure that the planned strategy is competitory
5. Decide on public presentation steps for organisational staff
6. Regular reappraisal and obtain feedbacks
Issue 4

Target was non Smart

Harmonizing to this instance the given mark was non SMART. All organisations have their corporate marks. Those marks are divided into subdivisions and assigned single sections with those divided marks. Then those single sections assigned departmental mark among their section members. Those are calls single marks. Those single marks and departmental marks should carry through through strategic programs. and those determinations which implement to accomplish departmental marks should ever aline with the corporate mark.

Ex-husband:

Figure 2

When an organisation set up a mark it should be SMART ( Specific. Measurable. Achievable. Realistic. Time edge ) and besides it should be structured with public presentation. conditions and criterions. Ex-husband: production squad should bring forth 10000 flowers separately. 100 % accurately within a given twenty-four hours within given machine capacity.

Issue 5

Biasness of directors and supervisors. No interrelatedness among direction and employees In this instance there was no any interrelatedness among direction and employees. Some managers/supervisors consider employee as machines and they reject production or trade name as low quality as their want. This is no just and struggles. high LTO. high absenteeism. high tardiness can be happened The best theory for the Human Relation is Hawthorne Studies. Elton Mayo was the laminitis and he did a research in Western Electricals. He searches how the lightning and light affect to the worker
public presentation. From this research he founded that human dealingss can impact worker public presentation instead than physical conditions. We all are human being. We all are pleased to hold pleasant relationships.

It is a psychological demand. In an organisation if there are so many good physical conditions but no interrelatedness between employer and employee that organisation will non be able to accomplish its desirable marks. Harmonizing to this instance thre was no interrelatedness between employees and direction and besides biasness was at that place. As a consequence employees were acquire together with Trade Unions for gain their rights. That was a immense disadvantage for an organisation. And besides in the meeting with TUs direction stance that if employees enable to carry through marks on clip they will be implement a redundancy plan. That was non suited and a point of struggle. To forestall this state of affairs organisation can

Implement Soft Skill plans for directors and supervisors.
Maintain just public assistance plans.
Implement Participative Management System.
Make standard degree of production quality and do cognizant employees about that.
Then rejection and low quality stigmatization will non be bias.

Decision

Blue Flowers ( Pvt. ) ltd is a taking unreal flower maker which provides unreal flowers for local and foreign markets. They desired to increase their production by minimal 40 % but faced jobs because of hapless environmental consciousness. hapless marks. and weak inducements. If Blue flowers follow sound incentive system through a strategic program they will ne’er go unsuccessful in deriving 40 % production increase.