Fab Sweets Limited Essay

I. Introduction: FAB Sweets Limited is a manufacturer of high-quality sweets. The company is located in the North of England which is a medium-sized, family-owned, partially unionized and highly successful confectionery producer. The case analysis takes place in HB department, the most problematic department of the factory. The department produces and packs over 40 lines of hard-boiled candies using a batch-production system. The department has a 37 people in work, the majorities are skilled employees. This is organized in two adjacent areas: one for production staffed by men, 25 in quantity, and one for packing staffed by women, 12 in quantity. The two divisions are separated by a physical barrier overseen by a charge hand and a supervisor respectfully. The department manager also oversees both division and has to report to the factory manager. Training takes place on the production process, which is essentially quite simple, but it normally takes two years to acquire the skills necessary to effectively complete all tasks of production. Many different product lines can be produced simultaneously with each task interdependent of the next. Although the job seems quite simple and the management of the process is straightforward, the department however faced many serious problems. II. Statement of the Problem: The main problem experienced in HB department is related to motivation which is the high level of turnover (refers to the high rate of movement of employees out of a firm), six new managers in eight years. The problems that also affect the company were low target production rates and high level of scrap (high rate of rework) in the department. Other simple problems arose, such as: employees had little input in the decision-making responsibilities, low motivation, low job satisfaction, and didn’t have enough appreciation, feedback and recognition on their performance. In addition, there were conflicts between the supervisors and employees in the production and packing areas and the grading and payment levels wasn’t satisfactory to the workers. III. Objectives of the Study: The major objective of this case analysis is to solve the main problem in HB department by using some different approaches. The following are the other objectives to account in solving the problems: a) To consider the areas of internal and external environment of the company by implementing the SWOT analysis. b) To carry out the alternative courses of actions and identify its advantages, disadvantages, costs and, benefits. c) To recommend a possible and specific solution to a problem. d) To implement a plan of action, and lastly; e) To identify the potential problem and their resistance to change and lay a contingent plan of action to solve it. IV. Areas of Consideration: Internal Environment| External Environment| Strengths| Opportunities| 1. Systematic way of production 2. Men and women are organized in two adjacent sections to avoid discrimination 3. High-quality products 4. Partially unionized 5. Division of labor is present| 1. Many entrepreneurs will invest to the company 2. Good image of the company will arise 3. Many customers will patronize the products 4. Many job seeker will apply to the company 1. Job conflict and insecurity occurs because there is no teamwork or cooperation between employees and their co-employees as well as the supervisor 2. Too much rework is frequent/often present 3. Employees had few decision-making responsibilities, low motivation, low job satisfaction, and low performance feedback 4. There is a physical barrier, not allowing the employees to communicate freely to themselves 5. There is an assembly line (production line)| 1. Production delay 2. Possible shortage of raw materials 3. High level of labor turnover 4. Mistakes and breakdowns 5. Job layoffs, lose interest and boredom| V. Alternative Courses of Action: 1. Implementing job rotation program. Advantages:| Disadvantages:| * Job enrichment * Job enrichment * Gains experience and knowledge of a new task or skill (as a learning mechanism) * Intrinsic motivation to perform caused by newer challenges * Career development * Reduces boredom, dissatisfaction and work stress and stimulates development of new ideas * Provide opportunities for a more comprehensive and reliable evaluation of the employee * Develop leadership * Broadens/expands exposure to company’s operation and for turning specialist into generalists * Gains visibility with a new group of co-workers and managers. Visibility for a good employee brings potential opportunities| * An employee does not gain a particular specialization. * Moving from one job to another also gets irritating because the normal routine of an employee is disturbed and also time is wasted in adjusting to the new job. The employee may feel alienated when he/she is rotated from job to job. * Training costs are increased * Because staff members would be performing different tasks, if they discover it as a weakness, the task won’t be performed as well as by someone that is strong at it. * Staff could be rotated away from a task that they enjoy, or perform very well to a high standard which could lead to other staff members not performing the same tasks as well.| Costs and Benefit Analysis: A job rotation strategy comes with costs. When moving employees into multiple positions, you must invest time and money into training the workers in all those positions. This not only includes costs for the employees who are rotating, but also the time of the managers and others who must train the employees in each area. The following is the accurate cost and benefit analysis of job rotation program. Implementing job rotation| N/A|  £ 44.71| | 2. Wage incentives, benefits, rewards, bonuses, and promotions to work must be given to the employees. Advantages:| Disadvantages:| * Individual performance enhancement * Employee development * Company profitability * Healthy competition * Worker retention * Increase productivity and level of sales * Can focus employees on hitting a target * Places a value of achievement| * Employee resentment * Rifts between employees * Sense of inequity * Individual earnings can fluctuate * Greater costs * The employee will demoralize if not earned| Costs and Benefit Analysis: Things considered| Costs| Benefits| Seminars|  £ 44.71| Total net savings:  £ 119.22Net savings for two years:  £ 87,030.60| Processing of documents|  £ 74.51| | 3. Conducting mentoring program for motivating the employees and supervisors. Advantages:| Disadvantages:| * Onboarding * Employee satisfaction * Employee retention * Employee productivity * Career growth/Succession planning * Knowledge management * Quality * Synergy * Reduce frustration| * Lack of organizational support * Creation of climate dependency * Resentment of mentees * Role conflict between boss and mentor * Difficulties in coordinating programs with organizational initiatives * Costs and resources associated with overseeing and administering program| Cost and Benefit analysis: Things Considered| Costs| Benefits| Sponsoring a joint orientation workshop|  £ 29.80| Total net savings:  £ 111.78Net savings for two years:  £ 81,599.40| Providing training for mentoring program participants|  £ 37.27| | Implementing|  £ 44.71| | Recommendation: After evaluating the decision matrix, the analyzer recommended that the course of action that will be the solution to a problem is the implementing of job rotation program. Job rotation involves the movement of employees through a range of jobs in order to increase interest and motivation. Job rotation can improve â€Å"multi-skilling† but also involves the need for greater training. In a sense, job rotation is similar to job enlargement. This approach widens the activities of a worker by switching him or her around a range of work. VII. Plan of Action: Activities involve| People Responsible| Time Frame| Cost/Budget| Holding meeting for determining interests of the employee| Management and employees| 1 hour| No cost| Distributing Job Rotation Questionnaire and answering it| Management and employees| 5 minutes|  £ 7.45| Calculating the scores for the jobs considered for rotation| Management and employees| 3 minutes|  £ 1.49| Reviewing the job rotation scheme| Management| 1 week| N/A| Providing trainings| Management and employees| 1 week|  £ 29.80| Providing employees with adequate break-in-time| Management and employees| 1 hour| No cost| Implementing the regular job rotation| Management| 1 week|  £ 44.71| Monitoring job rotation| Management| 1 week| N/A| Holding follow-up meetings for evaluating the rotation| Management and employees| 30 minutes| No cost| Tracking other measures for determining the effects of job rotation| Management and employees| 30 minutes| N/A| Total cost:|  £ 83.45| VIII. Potential Problem: The potential problem is that the particular specialization of employee will possibly lead to loss of job mastery and gradual loss of productivity because of too much time spent on training process. Resistance to Change: Its capacitance to change takes two years or more. It changes over the period of time by gradual growth and development. Contingent Plan of Action: The contingent plan of action is implementing job rotation monthly and not weekly for minimizing the possible outcomes of particular specialization in the workers. If still other problems arose, the job rotation program will be conducted quarterly. Things engaged in this plan: 1. Holding meeting for evaluating the job rotation program by the management and employees. 2. Maintaining the regular job rotation by the management. 3. Monitoring job rotation also by the management. 4. Holding follow-up meetings for evaluating the rotation by the management and employees. 5. Tracking other measures for determining the effects of job rotation also by the management and employees. IX. 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