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In the case of Parapex, the supervisor of the 3PrdP factory received too much orders without consideration about the capacity and number of workers. Then, she selected working overtime as a solution for producing on time of orders.

In the case of Parapex, the supervisor of the 3PrdP factory received too much orders without consideration about the capacity and number of workers. Then, she selected working overtime as a solution for producing on time of orders.

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2) Effects of poor decision making



According to Edmunds



18



, decisions managers made might address a specific



problem in a department or the main goal of the company. Profitability is one of

obvious influences of business decisions. If the manager made a poor decision, it

may cause a serious problem on the profit of company.

In addition, Edmunds 13 mentioned that the poor decision may cause effects on the

human resources or production. Edmunds



18



also stated “If you overburden your



staff, you might start losing key employees.”

3) Decision making skill and reasons of poor decision making.



According to Alton19, the role of “decider” is one of crucial roles in business.

Alton 19 mentioned that decision making is like any other skills that need to be trained

and practiced. If people did not have experienced in decision making, their

performance would be suffered.

There are many reasons to make the poor decision.

The first reason is lack of doing research. The manager should spend enough time and

effort on research such as the potential cost, the potential risks, the current human

resources or the potential outcomes or what impacts have arisen as the result of

similar decisions in the past before making decision on receiving the large orders.

(Alton19)

Alton 19 also stated that the second reason was “going on instinct”. It means that some

managers made decisions based on charisma and intuition.

The other reasons were that some managers made decisions too fast without thinking

carefully because of the pressure of time. They were worried if they got a long time to

make decision, it may cause some bad influences. However, when they made the poor

decisions, it would lead to the more serious effects.

Overall, decision making was considered as a necessary skill that needs to be trained

for the better working performance.

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In Parapex case, the problem happened because of wrong decision of the supervisor.

She decided to receive the large orders without forecasting the problems of human

resources and production. This made workers have to work overtime too much. They

were too tired and did not have enough time for family. Then, they stopped to work

and led to the low production and decrease in sale and profit.

4) Lack of required skill



According to the Ministry of Business, Innovation and Employment



20



, lacks of



required skills and capabilities are one of causes that make employees not obtain the

required standard quality in work.

Especially, Odendaal 21 mentioned that lack of skills was the reason why many small,

medium sized companies and micro enterprises (SMMEs) failed.

5) Forecasting skill



Forecasting refers to the ability to figure out what will happen in the future by using

the available information. Two types of forecasting are qualitative forecasting and

quantitative forecasting. In qualitative forecasting, predictions will be conducted

without numbers-driven. In contrast, quantitative forecasting provides numbers that

are used directly to plan for the future. (Newton 22)

According to Clayton23, one of most important leadership skills is forecasting.

Forecasting assists to manage the profitability for the organization. In addition,

forecasting assists to spot the error and alerts to new factors. Besides that, forecasting

guards against failure and it is a method to recognize potential problems early.

In Parapex case, if the supervisor of factory was good in forecasting, she could predict

the potential problems that resignation of workers because of the pressure of job.



32



6) Planning skills



“Planning skills are any skills that allow you to look ahead and accomplish goals or

avoid emotional, financial, physical or social hardship. These skills let you make and

implement decisions.” (Thibodeaux 24)

Planning is one of the most important business skills every successful entrepreneur

must have (Newlands25). Taking one bad step may break the business. Entrepreneurs

should estimate risk, benefit and cost when they conduct their plans. They also need

to consider time and budget in order to make the plan a reality.

Hill



26



stated that planning skill was so important in business because it assisted for



efficient use of resources. The planning provided the necessary information for

making decisions about how to allocate resources effectively in order to reach the

goal. Planning also assists to maximize productivity and avoid the waste on projects.

In the case of Parapex Company: The problem happened because the supervisor of

the factory had lack of required skill and capacity in forecasting and planning skills.

She decided to receive the large orders without forecasting the problems with human

resources and production. This made workers have to work overtime too much. They

were too tired and did not have enough time for family. Then, they stopped to work

and led to the low production and decrease in sale and profit.

7) Causes of lack of working skills



• Employees were promoted before being ready

Bernard



27



also explained the cause of lack of skills was that the employees were



promoted before being ready or they were assigned a new set of job duties. In this

case, some extra training or mentoring would solve the problems of performance.

Similar to Bernard, George



28



stated that employers should have ensured that



employees had enough training before moving them into a position of greater

responsibilities or before changing their job duties.

33



• Lack of training

Mathis



29



stated that the employees would have lack of skill and perform at low level



if they did not obtain enough training in all aspects of their job. Mathis



29



also



provided some reasons for lack of training:

-



Avoiding training cost: The employers assumed employees had enough

knowledge and skill to avoid the training cost



-



Poor selection: The employer believed in the employee’s resume or application

without testing carefully.



-



Leaders assumed that if employees were sent to training, they are trained. It means

that employers sent employees to training without debriefing them on what they

learned or how they used their new knowledge or skills.



-



Believing in on the job training: The employer assumed that employees could be

trained effectively through working. It means that employer believed that

employees will study and have more experiences when they work in the real job

rather than spend time and cost to training at school.

• Skills not match with the job



Mathis



29



also stated that employees will perform at a lower level if “their skill set



does not match the job”. Sometimes, managers recruit an employee with one

particular job but then, assigning entirely different tasks. In addition, managers

sometimes arbitrarily stop employees from their assignments to execute other special

projects.

In Parapex case, the supervisor had lack of required skills because she did not receive

enough training when she moved in the manager position. There were three reasons

that caused lack of training to her. Firstly, the company wanted to avoiding training

cost. Secondly, the company had poor selection because the company based on her

experiences and certificates but did not have any tests for checking her skills and

knowledge. Finally, the company believed in on the job training. The company

believed that training through working in real job was better than training in the

34



theory. Because of these reasons, the bad situation happened when the supervisor had

lack of required skills that led to poor decision making and caused the problem of

excessive overtime.

CAUSE AND EFFECT MAP

Poor selection



Lack of required

skills



Receiving too much

orders without

consideration



Poor decision

making



Excessive working

overtime



Lack of training



Low Salary

High Turnover

Rate



Avoiding

training cost



Believing in on

the job training



Strict Punishment

Policy



Far Location of

company



PART 4 - POSSIBLE SOLUTION AND ACTION PLAN

1) Possible solution

Bong



31



indicated the steps employer can take to react an employees who has low



performance because of lack of skills or knowledge to perform their job

responsibility.

-



Discuss the issue with the employee: Bong



30



explained that the employer needs to



meet and discuss with the employees to understand the cause of the performance

issue. If the employee has motivation and willing to overcome the issue, the employer

will establish a plan to resolve the issue. Through the meeting, the employer will

discuss with the employees about the mistake or quality problem.

-



Develop a performance improvement plan: the performance improvement plan needs

to ensure the agreement between employer and employee. The employee needs to

take responsibility for their own development. (Bong 30)

35



There are many ways to solve the problem of lack of skills and working ability.

MindTools



31



indicated five main ways to overcome the performance problem caused by



lack of skills and ability.

-



Resupply: provide the resources to do the job. This assists to ensure that the

employees have enough what they need to perform well and meet the required

quality.



-



Retrain: provide additional training to employees. “Explore with them whether

they have the actual skills required to do what's expected”.



-



Refit: when two above measures are not sufficient, the employer needs to refit the

job to employees. This means some parts of job should to be reassigned.



-



Reassign: if refitting the job is not effective, employer should consider to reassign

the poor performer. “Typical job reassignments may decrease the demands of the

role by reducing the need for the following: Responsibility, Technical knowledge,

Interpersonal skills”.



-



Release: this is the final option for poor performer.



Similar



to



Employment



Bong’s

20



opinion,



the



Ministry



of



Business,



Innovation



and



indicated “training and development opportunities as a part of



performance improvement plan”. The Ministry of Business, Innovation and

Employment 1 also mentioned that if the employee fails to develop the required skills, the

following steps may be conducted such as reassignment of duties, or move to another

area to obtain a better job fit. Finally, recruitments process should be reviewed to ensure

the selection of the appropriate employees to the recruiting position.

2) Solution from problem owner’s perspective

The Vice Director stated that human resource department recruited 80% new

employees to replace the resignation workers. Through the interview, Vice Director

suggested three ways to solve the problem. Firstly, the human resource department needs

to recruit more workers if company intended to receive more large orders. Secondly,

company will check the competence of workers in other chains and select the qualified

36



ones for skateboard chain. Then, company will train them for the backup plan in the case

skateboard workers quit job. Finally, the company needs to make the plan for training the

necessary skills for the supervisor of factory such as forecasting skill and planning skill to

avoid the problem from poor decision making.

Similarly, Mrs. Trang (Human Resource officer) also suggested to consider the

managing course and training necessary skill in production such as making production

plan, analyzing and forecasting skills for the supervisor. She said that HR department was

still recruiting the new workers to replace the resigned workers and finding out workers

of other factories who have suitable experiences and knowledge to train for back up plan

of the 3rd factory. She thought that the company needs to open training course for not

only Mrs. Nguyen but also for all supervisors in other factories. Mrs. Trang stated

“Recently, we need to solve the problem of human resource firstly. Then, we will search

the suitable course for the supervisor. I think that we need to search the course for

Nguyen and we also need to train the other supervisor to improve managing skill, too.”

3) Action plan

Objective

1 Recruit more

workers for

skateboard chain



Action step Description Party/Department

Responsible

- Contact to the

Human Resource

recruitment website

Department

(Vietnamworks and

Career Builder)

- Write description job

Human Resource

of the skateboard work Department,

Production

Department

- Post recruitment

Human Resource

advertisement on the

Department

recruitment website

- Selected potential

Human Resource

candidates

Department

- Contact the supervisor Human Resource

of factory to set the

Department,

suitable time for

Production

interview.

Department

37



Target Date

25/05/2018



25/05/2018



26/05/2018 –

25/06/2018

15/06/201830/07/2018

01/08/2018



- Contact the candidates

to invite coming the

interview

- Interview with

candidates

- Select the qualified

candidates.

2 Select and train the - Review background,

qualified workers

education and

from other chains

experience of the

for the backup plan

workers.

- Ask for the

recommendation about

the good workers from

the supervisor of other

factories for the

skateboard position

- Contact and ask these

qualified workers

whether they expect to

move to “skateboard”

chain.

- Contact and set up time

with the supervisor of

factory and the leader

of “skateboard” chain

for training.

- Conduct training

3 Training the

- Discuss with the

necessary skills for

supervisor about the

the supervisor of

issue

factory such as

- Search the suitable

forecasting skill

courses about

and planning skill

forecasting and

planning skills in

production

- Inform the supervisor

about the time of

courses



38



Human Resource

Department



02/08/2018



Production

Department

Production

Department

Human Resource

Department



05/08/2018 –

12/08/2018

12/08/2018 –

15/08/2018

01/08/201815/08/2018



Human Resource

Department,

Production

Department



08/08/201815/08/2018



Human Resource

Department



16/08/201818/08/2018



Human Resource

Department,

Production

Department



18/08/2018



Production

Department

Vice President



20/08/201820/09/2018

05/09/2018



Human Resource

Department



06/09/201820/09/2018



Human Resource

Department



After

20/09/2018



1) Recruit more workers for skateboard chain



Firstly, HR Department need to contact to the recruitment website such as

Vietnamwork and Career Builder to negotiate about price and the service of

recruitment and select the suitable website for posting recruitment. At that time,

HR Department will also contact to the Production Department to discuss and

write job discription of Skateboard workers position. Next, HR Department will

provide job discription for the recruitment website for posting recruitment

advertising. After that, HR Department will be responsible to consider and select

the potential candidates based on the discription job. After selecting, HR

Department will provide these resumes for the supervisor of the 3rd factory and

discuss the suitable time for interview with these candidates. Then, HR

Department will contact these candidates to inform about the time of interview.

Finally, the supervisor of the 3rd factory will select the suitable candidates through

the resumes and the interviews.

2) Select and train the qualified workers from other chains for the backup plan

HR Department will be responsible to review the background, education and the

experience of all the workers. Also, HR Department need to ask all the supervisors

of other factories about suitable workers for Skateboard position. From that, HR

Department can select the qualified workers for this position. Then, HR

Department will contact to ask these workers whether they expect to move to

Skateboard chain. After that, the supervisor of the 3rd factory and the leader of

Skateboard chain will set up the time for training these workers about the

knowledge and skills of producing Skateboard, the ways to use CNC machines

and other necessory machines in this chain.

3) Training the necessary skills for the supervisor of factory such as forecasting

skill and planning skill

Firstly, the Vice President will set up the time for the meeting with the supervisor

of the 3rd factory to discuss about the above problem and which ones the

supervisor needs to improve. Then, HR Department will search the suitable

courses for training forecasting and planning skills in production from PACE

Institute of Management. Next, HR Department will inform the supervisor about

the course and and discuss the suitable time for training. Finally, the HR

Department will contact PACE school to register the course.



39



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In the case of Parapex, the supervisor of the 3PrdP factory received too much orders without consideration about the capacity and number of workers. Then, she selected working overtime as a solution for producing on time of orders.

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