This perception has a direct effect on employees’ engagement and organizational citizenship behavior towards the goals of the company. Branch employees are not fully committed to the organization (OB, p. 108) therefore the turnover is very high. Contextual: * Recruitment policies: * Managers are hired mostly on “relationships of mutual favor”, and not based on managerial ability or integrity. * Long term personal goals for these people are mainly to flourish their relationships, because that increases their personal value in that market. The goals of the company do not fit managers’ personal goals.
Alternatively, it finds its sales increasing but profits declining and cannot understand why. Perhaps the company keeps losing competitive bids for products and services and does not understand why. In many cases, accurate cost information is the answer to these questions. Improved understanding of the use of resources and the assignment of their related costs provides a competitive advantage. It helps a company or organization to develop and to execute its strategy by providing accurate information about the cost of its products and services, the cost of serving its customers, the cost of dealing with its suppliers, and the cost of
In fact, those “growing” companies are not truly “growing” because that even if they are still making profit, they are losing consumers and market at the same time. Especially those companies who owns irreplaceable resource and products for now, they should have a clear cognition that no product is indispensable forever. In addition, companies always narrow themselves to a limited area so that it is hard to have extraordinary improvement in their products. In order to keep their competitiveness in this rapidly developing age, asking for trouble is necessary so that companies will be pushed to develop products to reach higher level of consumer satisfaction. It is important to focus on customers and customers’ needs instead of just persuading customers to make the exchange.
The larger expenses coming along with high quality and services render salespeople a disadvantage when talking to their clients for business. The standards of performance (SOP) set for extra compensation seem unrealistic, with 75% of salespeople earning no commission in the first half of 1992, and so conceivably, fail to motivate them. This makes the result control less effective as they failed to evoke the desired behaviors – achieving sales targets. Together with other offers by competitors, this resulted in high turnover rate. Profit Sharing - Result controls may serve well with congruence between employees’ and company’s objectives, but employees take for granted the law-required 10% profit sharing of the company’s income and so their motivational effect seems little.
However single sourcing can be devastating for a firm, worst scenario the firm would not receive any products. The supplier could also lack the capacity to meet the demand from the buying firm regarding such matters as quantity and quality. Multiple sourcing is more common when the firm seeks to enhance competition and flexibility. The cost will be reduced because of competition and the risk with not getting any products will be reduced. Also the buying firm will get more
Additionally the investors were not exactly sold on the ideas either. They were judging past performance and were not completely convinced that the plan would work. The ramifications of that mistake were that since they did not conquer step one very well, all of the other steps seemed to suffer too. Everyone involved felt some sort of uncertainty and did not have a clear direction; which would be step three. “If you can sell your employees on the company's future and the importance of their role in it there are numerous advantages people are more likely to generate their own ideas, to contribute with enthusiasm, to keep slogging when it becomes unpleasant, and also to experience a sense of camaraderie and togetherness” (Spiro 2010) Another significant error that was made was in the HP story in which the vision was never communicated, step four.
What measure(s) might the company take to obtain valid data for setting the labor time standard? (Kimmel, Weygandt & Kieso, 2011) By Don slowing his normal work pace and not doing his best during the evaluation he set a lower standard for the other employees in the department. Although his actions benefited the employees, it could hurt the company. Now the company could be paying the employees for less work. Also, this will hurt the company’s production.
There is a failure to realise that long term better economic welfare also means general higher standards of living, as people have enough money to buy everything they need and some of what they want, competition is rife so drives quality up and prices down, and the government are able to take in more taxes from firms who are much healthier financially. This mass employment may lead to more jobs, but the workers themselves or the way they’re used is hugely inefficient. Another reason that labour production in the UK is so low is the lack of competition. There is a strong body of evidence that competition enhances productivity. So, with a lack of one there is a lack of the other.
As a result, share prices are not valued high, which drive away investors as they are not willing to invest for low yields. When shareholder’s values are not high, a company may gain a bad reputation. By gaining a bad reputation, the company loses the chance of retaining good amount of equity, therefore, having to waste more of the money earned from sales. In order to increase shareholder value, companies must either increasing revenue and reducing expenses or lower their cost of capital. In my opinion, when lowering cost of capital in the case of equity, the business is able to issue more dividends which in turn contribute to the increase in the value of shareholders.
Some disadvantages are unwillingness or exploitation of workers. Job enrichment is the opposite of job enlargement in that it maintains the same employee tasks, but increases employee responsibility. The advantages of job enrichment are makes job for interesting or challenging, helps to identify future managers, identifies higher needs of employees and may reduce workload of superiors. Some disadvantages with job enrichment are that some employees are uncomfortable making important decisions, can causes ego problems or resentment from other employees and employees may make the wrong decisions. Job rotation is very different from job enlargement or job enrichment.