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Abstract
In light of recent transgressions by our company, it is clear that our working model has not upheld the continuing success that our company has been known for in the past.We must develop a new system for our company to deal with issues on all levels from the employees, managers, and the entire organization as a whole in order to return us to prosperity.
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To begin looking at ways to improve our company in the face of the changing world, we must first look at the nature of our company.A company is not a living thing; yet, it is made up of living people.Our employees, at all levels, are not just vital cogs making our company function, but they are emotional beings.What they do effects what the company does, and in effect what the company does effects the employees.
A thought that was proposed to help us understand why our company has been failing is to look at the "behavior" of our company.Our organization will only be as effective as the employees.Our employees all have differing characteristics such as ethnicity, emotions, needs, wants, goals, expertise, knowledge and personality.All of these fuel different behaviors in different people.By better understanding the behaviors of our employees we can build a better foundation for the future prosperity of our company.
After looking at the needs of our employees, we must also look at our management philosophy.It has become increasingly clear that our managers need to learn more interpersonal skills to be able to communicate with the employees in their groups."Managers get things done through other people.They make decisions, allocate resources, and direct the activities of others to attain goals.Managers do their work in an organization.This is a consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals." (Robbins, pg. 5)
We will now look at variables that can help us to explain and predict outcomes for the situation our company is in.These can give us a sense of cause and effect.We know that we are losing ground in our markets to new competition from foreign companies.We must look at ourselves and determine what we can do to improve ourselves.It is a circle where the individual is responsible for causing a decline in our companies standing, but it is also the company itself that has led to this degradation of our workers and their workflow.Everything filters down to the individual employee, and their reactions.This model should address the problems we are seeing with out employees and thus lead to a more stable building block from which we can repair the company as a whole.
In our model, there are five types of dependent variables absenteeism, productivity, job satisfaction, turnover, and organization citizenship.We will define and address the three major variables that are affecting our company's productivity at this time and we will use them to help predict possible outcomes for our company.It is known that for one variable to occur, others must also take effect, and be affected.When one variable is thrown out of kilter, then other variables will also be affected.
Productivity
Our main concern as a company is our productivity."Productivity has been generally defined as a ratio of a measure of output to a measure of some or all of the resources used to produce this output" (http//www.accel-team.com/productivity).For a long time, we were the leaders in our field of production, but as is often the case, when nothing seems to be going wrong, we did not invest time and resources to improve our systems.As increasing competition has cut into our markets our profit has suffered.We did not spend the money to revamp our factories, and now our machinery is increasingly out of date.For our company to regain its foothold in the market, we need to look at the different levels of our model (individual, group and organization) for where we went wrong, and how we can improve.
We need to look not at just efficiency, but the effectiveness of our work force and management."Effectiveness brings a qualitative dimension to the measurement of productivity" (http//www.accel-team.com/productivity).We need to look at ways to improve the productivity of our workers on different levels.Its one thing to educate and train them to handle new tasks, but we must also have management in place that can relate to the workers.We are all striving for the same goal, and there should not be tension between a manager and his group of employees.Our managers also need to be trained with the knowledge of the work being done under them.Communications are a key element whether it is in passing along new techniques, or information pertinent to one's job.
Human relations are important to the development and long-term sustainability of organizations.The improvement of relations between all levels of the company is a key factor to improving the productivity of our organization.Merely aiming for higher production will not always succeed, but combining that with the satisfaction of the worker in his personal relationships, work relationships, and surrounding environment, then can we expect to see higher output.
Two of the other dependent variables we will look at are direct examples of a workforce that is not happy and focused on what they are producing.And from them, we can see causes for decreased productivity.
Absenteeism
"Absenteeism is the failure to report to work.Its annual cost has been estimated at over $40 billion for U.S. organizations" (Rhodes, S.R. 4,, pg.05-50).Employees of course cannot be expected to be at work every workday of the year.Absenteeism is one of the biggest problems we face when dealing with our workforce.When our staff is not at its complete contingent, it is hard for us to achieve maximum productivity.Managers must find replacement workers to fill certain spots, and time must be taken to train the replacements.The replacements cannot achieve the same productivity in one day as a fully trained regular worker."Absenteeism can be considerably more than a disruption; it can result in a drastic reduction in quality of output, and, in some cases, it can bring about a complete shutdown of the production facility" (Robbins, pg. ).
We have always planned for a certain percentage of absenteeism, as people will get sick, etc.It is not always a bad thing for someone to be absent from work as their weakened state may lead to poor decisions, or other dangerous situations.We do however encourage our employees to be at work regularly.We have seen increases in absenteeism as our production has slowed recently.This seems to suggest that while production can be hampered by absenteeism, absenteeism can also be a product of the state of the company.
It is suggested that employees, when they are not happy, will find more excused to skip work.If they feel productivity is down, and there is less need to work so hard, they are apt to take that sick day, whereas when there is a better feeling in the company that we are moving at a full head of steam, they will not let something minor deter them from working.
Again, by coming back to the issued relating to work environment, we can see that happier as well as smarter workers are better workers.Having a sense of pride in the company will instill more loyalty in the worker.However, going hand in hand with absenteeism is the inevitable turnover rate.
Turnover
Turnover is the voluntary or involuntary withdrawal of an employee from our company.Voluntary turnover is difficult to eliminate, while involuntary turnover of course comes from us.A high turnover rate means increased costs to the company.We need to allocate money for recruiting new workers, training new workers, as well as any compensations due depending on the reasons for termination.Until a position is filled, we are also faced with costs arising from overtime for the people covering the workload, as well as a decrease in productivity as resources are spread thinner.
As the general morale of the company has been lowering, we tend to see an increase in the lack of job satisfaction by employees.We also see a loss of profit from the decreased production and loss of sales due to competition.If we cannot compete with another company's offerings of salary and benefits, then people are likely to leave looking for greener pastures.
Not all turnover is bad of course as we are happy to see inadequate workers leave thus allowing us to bring in better trained and educated personnel.Bringing in new employees can lead to the influx of new ideas, as well as increase the motivation and morale of existing employees.
In closing, we can see that two factors that have led to a decline in production are absenteeism/turnover, and a general lowering of company morale.We can also see that the lowering of our production has a direct effect on our employee's morale, which in turn created more absenteeism.We need to address the environment within our company as the foundation of our company rests on having not just the machinery to produce, and well trained and managed workers, but happy workers.
References
Employee Motivation, the Organizational Environment and Productivity, retrieved
from http//www.accel-team.com/productivity September 1, 00
Rhodes, S. R. and R. M. Steers, Managing Employee Absenteeism (Reading, MA
Addison-Wesley, 10). For a full review of the direct and indirect costs of absenteeism, see D. A. Harrison and J. J. Martocchio, "Time for Absenteeism A 0-Year Review of Origins, Offshoots, and Out-comes," Journal of Management, Vol. 4, No. , 18, pp. 0550.
Robbins, S.P. Organizational Behavior. (th Ed.). (001).New Jersey Prentice Hall
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