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You are a start-up company middle manager and it has been five successful years since you are a part of this start-up. You deal in protein products for different age groups. However, your employees this year are creating trouble demanding for pay checks which are already late. The employees never complained before but a new policy has been introduced according to which if the company does not certify you as a permanent member of the company then company has every right to take your job and may not even pay any pending salary. This news came as a shock and employees even demand an advance pay check. You simply depend on your quarter monthly sales for their salaries.
This was not enough when a rumour spread that your product does not meet quality standards. Now it can been proved that it does but it will not take less than six months to prove it and authenticate your product. In that time you may lose market to other strong brands. As for now sales are going all time low. It was not enough when the higher management has pressured you to come forward and deal with the situation. At this point attrition seems the only way out but this would confirm the employees of their fears.You as a middle manager are responsible to give an apt and economical solution to your problem keeping in mind the budget of the company and demand of the employees. Your solution must be economical for the company with a balance of critical situation analysis and product image should not tamper.
By the time, company proves its products’ standard, what the middle manager can do to prevent attrition:
1. Assure the employees that whoever have been working for the company continuously for the last 1 year will be given permanent status, thus assuring them of their job security.2. To win back the trust of the employees, introduce new policies in favour of employees like attractive perks and bonuses.
3. Introduce rewards (in form of salary raises) and appreciation for good performing employees to improve their morale.
4. Provide better amenities for employees at workplace.
5. Provide benefits like health insurance to show the employees that the company cares for them.
The manager should analyse the funds available with company and also have a word with employee to convince them their salary would be paid soom. In meam time pay a part of salaries on the basis of fund available as if employee start leaving the company it would even worsen the company’s image. Clear norms should be set for performance. Employees should be ensured that people continuously doing well would be made permanent. Employees can be offered stock option so they understand the companies situation and also gets motivated to improve companies image with the hope of earning more
1) Forum of discussion between employee union and middle manager so that people will not give ear to rumors.
2) The situation will last for six months so manager can inform employees to keep cool at the same time some part of their salaries will be given to them as stocks or as salary in account whichever is possible.
3) Hardworking employees should always be given recognition and message that company will take care of them.
4) Employees should assure that the task which are assigned to them should meet quality standards as it is our test to maintain our qualityAlthough everyone has tried to address the problem concerning employees, no one has focused on the problem concerning the product. Since in six months time, the product may lose market share, we need to ensure that we take the right steps so that we are able to recapture the market. This can be done by taking following steps:
1) Stop all money being spent on advertising for next 6 months.
2) Focus on preparing new catchy ads which can be launched as soon as the product is cleared. To ensure we don’t spend much money on this we can introduce a contest between employees for the best ad and give rewards to employees for the same.
3) Use money for aggressive advertising.
For problems related to resources:
1) Company should confirm all its employees which have been working hard for years/ who are performing well. Since we can hope that the company will recover within an year, along with the confirmations we can also announce bonuses for the previously confirmed and newly confirmed employees.
The case given to us is about attrition fears.Now there are 2 issues-one,adavnce pay demand by employees due to fear of job security. Second, low product quality.According to me employees can be cool down by forming new policies regarding job securing.Employee of the year or ratings should be given to ensure job security and to gain trust of employees since more than monetary rewards.they are satisfied with appreciation.
and as far as low product quality is concerned, we need to thoroughly investigate and find out where the problem lies.
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