Blue Flower (pvt) Ltd

...

faced by this company?

Problem Statement

a) Vision and goals are not aligned.

The vision of the company is “To be a leading manufacturer of world class quality artificial flowers in south Asia by year 2015”.but when consider Blue Flowers (Pvt.) Ltd they couldn’t conduct quality of the product. Important thing is incentive scheme should align with the company cooperate plan. It helps to achieve organization’s vision.

b) Not having better management amongst the several department.

Rendering to the Blue Flowers (Pvt.) Ltd has separate Purchasing, Production, Sales/ Marketing & Accounts department. But these have not well relationship.

Example:

• Productivity rate reduction month by month. So production department members have complained that due to no fault of their and due to slow down of other department.

c) Unable to maintain constant production flow.

After introducing incentive program, management evaluates 6 months production, according to these evaluation,

1st month production increased 20%

2nd month production increased 30%

3rd month production increased 32%

4th month production decreased 28%

5th month production decreased 20%

6th month production decreased 20%

When considering above results we can obviously identify production flow is not continuous.

a) Incentive scheme was confused for existing employees.

Because this incentive scheme introduced since 8 years. So requirements of employees not match of kind of long term incentive plan. And also this company locates in Monaragala district. Thus these people haven’t more knowledge regarding kind of incentive schemes. And also they have language problems directly be influenced.

b) Low quality of products.

Based on Incentives employees try to produce more. In that time they do not consider quality of products. They always try to produce more & more to achieve incentives.

c) Unable to meet market demand.

Because month by month company productivity is reduced. So in that time they can’t fulfill market demand.

d) Increased trade union actions.

According to this case obviously classify trade union actions increased gradually.

Eg: 60% production workers have complained something through their trade unions.

e). Low team spirit among employees.

Eg: According to this statement, accounts department did not pay incentives on time for production department. And they also pass their responsibilities to department to department.

f). Communication error.

Once reflect this case we can obviously identify they haven’t effective communication between departments. So top management should be explained conditions and benefits for bottom level employees.

g). Employees are de motivated.

Lower level employees are de motivated because they think management are misusing their labor resources.

Q2. What are the suggestions you suggest to the company in order to come out from this situation?

1) Appoint a panel to get ideas, and suggest regarding incentive scheme.

Panel should represented top level management, Head of each department & trade union member. So under that they can get suggestions and ideas regarding incentive scheme from every appointed member.

2) Objective should tally with vision.

Blue Flower (Pvt.) company vision is “To be a laddering manufacture of world class qulity.so objective of company should be aligned above vision. Especially management should think about quality of products. To achieve that objective management should establish good quality control system in organization.

Ex: ISO 9000, 9001

3) Incentive scheme should be simple.

When consider Monaragala district, It is rural area.So employees also are in same district. They have language problems. And also they can’t understand complex incentive scheme. Because most of employees are uneducated. That’s why incentive scheme should be sampled. Specifically incentive scheme in Sinhala medium.

4) Arrange a party for employees with their family members.

Arranging kind of events can improve team spirit among employees. And also increased loyalty of employees.

5) Department work study.

6) Can introduce computerized system.

Sometime accounts Department makes many mistakes. Consequently present new incentive software management can eliminate those circumstances.

Eg: IBM Kenexa

People Ticker

Sumtotal

7) Consult employees and trade unions suggestion and ideas.

Employees are more important resource in an organization. So management should be managed these resources effectively. That’s why they should consult trade union suggestions. Trade union is an organization made up of members.

8) Get staff feedback regularly regarding work place condition.

Day by day .weekly or monthly get feedback of employees are very important thing in an organization. So Blue Flowers (Pvt.) Ltd management can get feedback of employees regarding incentive scheme. It helps to eliminate some circumstances.

9) Check working conditions to help increase production.

Working condition should help to increase production. And also these are should familiar with employees.

10) Provide frequent contact to top management.

11) Provide a greater sense of personal sluggish.

Treat their employees