Compensation plan is not well designed and this is one of the major problem organization is facing. There is a perceived inequity in the distribution of rewards and benefits. Turnover is high among inspector and packer and the ratio among utility workers is about third as compared to the inspector or the packers, whereas operators quit job rarely. This is due to difference in wages. Inspector/packer are getting 12 dollar per hour, utility workers are getting 18 dollar per hour and operator are getting double the inspector and packer. This is leading to employee dissatisfaction amongst the employees, as they expect that they should be offered fair compensation rewards based on their contribution to their and is equally spread out amongst the employees. This could be the potential reason for the adverse impact that the organization is facing. This also leading to poor performance as they know that even if they work hard they are going to get the same money so they might not be putting in more effort. Due to low motivation production is suffering and also leading to increased customer complaints.
Job Design
Plastco packaging has high turnover especially in the production department, which seems to be linked to the job design which is not motivating or providing their employees job satisfaction. Control and responsibility is concentrated with a few managers who made changes on an ad hoc basis. This has led to a feeling of low involvement and engagement among the employees and that has resulted in poor performance. Job satisfaction is low and that is leading low productivity which in turn is reducing the competitiveness of the organization. A well designed job increases productivity and can improve job performance. Poor job design leads to absenteeism, turnover, lower productivity and low employee morale
Secondary Problems
Poor Decision making
There is problem-solving with the decision making style which is more ‘reactive’ rather than ‘proactive’. Most of the problems are solved only when they occur rather than being investigated before so that time and resources are not wasted. There seems to be very little encouragement given from managers for shift workers to become involved in decision-making. Workers tend to ignore issues as they know they are involved in workers and this has is turning negative for the organization as workers are most close to the processes and they can give right feedback as to what is going wrong and what problem they are facing.
High turnover
The company is also facing high turnover of employees most of them inspectors, packers, utility workers. Low productivity is affecting the overall profits of the organization. High levels of waste have occurred due to the inefficiency in work amongst the workers. As employees are experiencing low job satisfaction and their morale is low they are not performing to the standards
Poor interpersonal relationship
The interpersonal relationship between the employees is poor and this has resulted in rift amongst the employees of various departments. Since the employees are not happy about their job their performance levels have declined and this has affected on the production and this led to customer complains about the inconsistent quality of product.
Low job satisfaction
Employees are not happy with their jobs and this is affecting the whole organization morale and has led to poor product quality and increased customer complaints. This might also be leading to stress at work due to diminishing quality of work. Alternatives to resolve symptoms Primary problems.
Job analysis is required for setting up a proper compensation system. It will help in determining Skill levels, compensable job factors, work environment and responsibilities.
There is a need to restructure the compensation system, reward system should be incorporated and more intrinsic rewards should be implemented
Organizations can try to raise productivity levels due to poor job design by offering non-monetary rewards such as greater satisfaction from a sense of personal achievement in meeting the increased challenge and responsibility of one's work.
Job enlargement, job enrichment, job rotation, and job simplification can improve the negative effects of poor job design.
Pros
- Job design is a tool which would help to motivate and challenge employee.
- It would increase employee motivation and job satisfaction.
Cons
- Time consuming and costly
Alternatives to Secondary Problems
As the company has poor interpersonal relationship, low involvement and engagement an employee feedback forum should be created that would allow all employees to share their views and opinion.
In break periods it would be a good idea to invite the employees from each team and shift to meet with the manager to share their opinion and suggestions for improvement which would keep the employees involved and it would make them feel that they are heard and it would improve employee morale and motivation.
Pros
- Reduce absenteeism, lower staff turnover
- Improve morale which can only be good for both staff and employers alike.
- Improve work relationships.
Cons
- It would take time
- Some employees may be reluctant to voice their concerns.
Recommendations:
Employee feedback forum should be created that would allow all employees to share their views and opinion directly to the managing director.
Job analysis is required for setting up a proper compensation system.
Compensation system should be restructured and more extrinsic rewards should be added like bonuses, paid vacations and promotions. It will help in reducing turnover and help in retention.
It is advised that job enlargement, job rotation and job rotation be implemented which would help in improving the overall he negative effects of poor job design
Implementation Plan
Short term
Preparing and collecting information for job analysis.
Setting up discussion forums
Team discussion in cafeteria to share views and ideas
This can be done in 4-5 months. HR, management and employees would be involved
Medium Term
Job redesigning based on job analysis information
Job rotation, job enlargement and job enrichment be implemened
HR and Management would have to be involved
The time frame predicted for the plan to be implemented could take1yr-2yr
Long Term
Compensation restructuring and setting up a system with pay equity
HR and Management would be involved
It will take more than 2-3years for this to be set up effectively as restructuring the compensation system is a lengthy process.
Work Cited
Belcourt, Monica, and Monica Belcourt. Strategic Human Resources Planning. Toronto: Nelson Education, 2012.
Long, Richard J.. Strategic compensation in Canada. 4th ed. Toronto: Nelson Education, 2010.
