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Establishment of the Problem:
Rash pharmaceuticals has shifted from a paternalistic system of management to a more professional system in which the sons of the promoters are the directors. After the introduction of these structural changes in the top management, there was increase in the employee absenteeism and a high employee turnover rate. Further, the responses to the consultants’ questionnaire shed some light on the areas of concern such as
Disparity in the salary structure for same level across departments.
Unplanned changes and ambiguity about the current thinking and ideas of the management.
Channels of communication between the top management and lower levels are not open.
Bureaucratic nature of inter-department communication.
Ambiguity regarding the HRM policies particularly those on promotion and appraisal.
Supervisors feel helpless in either rewarding or punishing their subordinates.
The employees did not feel as a part of the decision making process and perceived that the management was imposing its decisions on them, leading to a feeling of exploitation by the company. Also, due to lack of clarity with the HR policies of the company, the employees were sceptical about their growth prospects with the company.
The effect of above factors has led to dissatisfaction among the employees.
To decrease the high employee turnover rate by improving employee satisfaction.
Criteria (a) will be satisfied, as the alternative will make the employees aware of the changes around them and their role in the organisation w.r.t to those changes. Also, clarity regarding the HR policies of the company will reduce the concern related to the disparity in the salary structure. Opening of the communication channels will also introduce transparency in the functioning of the firm and restore the satisfaction among the employees
Criteria (b) will be satisfied, as the alternative will reduce ambiguity prevailing in the employees’ minds and hence reduce the turnover and absenteeism.
Criteria will be satisfied as it will dispel the negative perceptions of the employees towards the top management.
Criteria (a) will be satisfied, as the alternative make the employees feel more of a part of the organisation and hence will reduce dissatisfaction.
Criteria (b) will be satisfied indirectly.
Criteria will be satisfied, as the alternative will dispel the feeling of exploitation that the employees have been feeling.
Criteria (a) will be not be satisfied, as the alternative will further increase dissatisfaction.
Criteria (b) will be satisfied.
Criteria will not be satisfied, as the alternative will increase the feeling of exploitation among the employees.
Criteria (a) will not be satisfied directly as the new employees are not dissatisfied; they are mostly acting on the inferences drawn from their interactions with the older employees.
Criteria (b) will be satisfied as the new employees will become aware of the company’s objectives, policies etc. and their efforts will become aligned to the firm’s objectives. The knowledge of the firm’s HR policies will also ensure that there is no ambiguity in the minds of the new recruits and they will not be influenced by what they hear from other employees.
Criteria (c) is satisfied.
After the evaluation of the alternatives, they are prioritised as
Improve on the information sharing and communication through the use of e-mails, Continuous feedback system, open forums and clearly defining and communicating the HR policies.
Enforce attendance rules and agreement with the employees to ensure that the turnover rate is not high.
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