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Motivation
The introduction of an independent appeals and safety panel has led to far fewer appeals.
Management now realised that every action that they took would be assessed by people
outside the company and that their treatment of employees had to be correspondingly
improved. This had led to the resignation of the production director, who had felt strongly
that he should be allowed to run the department without interference. A new production
director, S Longon, is prepared to work with such constraints. No outside appeal had been
made in the six months since the introduction of the system and the company had won two
awards for its employment of minorities.
Burke in your fourth, and penultimate year as managing director continues to make
progress. The workforce now numbers 400 with 20 managers in supervisory positions.
Overall labour turnover was down, average skills substantially up and individuals were
being paid considerably above the market average. A recent worrying trend has been the
loss of some of the most highly trained individuals, with the common view that the
"company was not doing enough for them".
The policy of paying individual bonuses that you as J Franklin inherited has been
continued, but you feel that there should be some mechanism introduced to link group or
individual performance more directly to profitability, which is now running at an annual rate
of €22 million on sales of €172 million.
The result of the improved profitability and the positive cash flow has been a steady
increase in the retained profit within the company, even allowing for the demands of
expansion. Though the shareholders have continued to press for this money to be
invested in an active acquisition policy to increase market share in the United States you
have resisted this suggestion by insisting that growth should be managed from within.
It is, in your opinion vital that the company continues to develop its internal resources by
the appropriate type of investment in personnel and equipment. Though the trend has
been towards improved labour relations you are aware that there have been a number of
recent complaints concerning the way particular departments are rewarding performance,
which has been combined with an overall perception throughout the company that not
enough is being done to motivate staff.
You feel that there are substantial grounds for improving motivational investment within the
company and you have asked for suggestions from the other managers as to how this
should be best achieved. You have also decided to consider individual problems and have
requested that senior managers passed to him all appraisal reports that posed particular
difficulties in deciding what action that should be taken to improve the performance of the
individuals reporting to them. The resulting list of suggestions and appraisal reports have
been collected in a file which you are now considering.
Item one
From B Dawes Marketing Manager To J Franklin
Policy on company cars. You asked for suggestions as to improving motivation within the
company. A major complaint from the administration staff is that whereas the UK sales
team are provided with cars neither the office based staff nor those working overseas have
this perk. This appears to be causing major friction and with the company finances in such
a good state we could extend company cars throughout management and supervisory
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