1. Identify the contextual variables impacting the firm.
Officially DCCL is responsible only for sales and services they did not manufacture any product. The other partner company in America handles this department.
Due to the difference in social matters, some misunderstandings have been taken place between them. They get earnings from three aspects: Margin in sales, Manufacture warranty by selling products.
DCCL face loss for giving repair in warranty products because the parent company did not cover this.
2. Identify the structural variable:
The compensation system over there is not good because there are no benefits is giving to the employees. There is a bad job design for the TSS (technical sales specialists). Under the excess supervising TSS is not able to decide they had to take permission from the FSM (Field service managers) to order parts for repair, Traveling, servicing and scheduling. Moreover, they must meet the scheduled production levels.
3. Based on the above, describe what managerial strategy the organization is using.
As per the situation, the employees are not allowed to do their job work freely because the manager was supervising them personally by standing on their heads. The TSS (Technical support service) is also not allowed to provide advice to the client about the changes that comes in technology. This thing is responsible for the bad condition of the company. Thus, the classical managerial strategy was used by the DCCL organization. In the modern era, this managerial strategy did not provide a healthy work environment for the employees. Thus, the problems of high employee turnover, Misunderstanding, poor communication, Demotivation, less satisfaction of job has occurred in the organization.
TSS is the face of the company because the customer gets service and support from TSS which is very important. So, to make a good customer experience DCCL should make the TSS satisfied, Motivate and happy as the success of the company is relay on them. TSS is the maintainers and installers of the company’s equipment instead of makes TSS responsible managers supervise them closely. Restrict them from using the right to take a decision on their own. The company’s managerial strategy insists them to work under FSM. So, TSS is struggling to get positive moral because the situation is negatively overwhelmed situation.
TSS did not allow working freely safely where even the safety standards are not fulfilled. Moreover, less customer satisfaction increases servicing blame on the TSS which is also very stressful for TSS. This encourages salespeople forcing the closure of sales and not informing their clients of safety standards that are required to be modified prior to installation. If, machines were installed without meeting the safety standards, the machines get to suffer and require more maintenance as seems. Then the standard of quality, Profits and customer satisfaction was decreased or Employee turnover, Service calls, and complaints are increased.
4. Identify the types of problems they are currently experiencing regarding their employees and the kind of employee behaviors they need to achieve their goals.
In this organization, every department have different duties and responsibilities in the different Provinces in Canada. By meeting all the qualification employees gets hired in the company. The working environment of the company is not good. Employees working with low morale, less motivation, Bad equipment condition which is not an opportunity for an employee to obtain the desired behavior. Because of Duplox Canada is busy to repair the machines all the time from TSS and solving the customer complaints. By putting working pressure on TSS to meet the targets of services make the employee comfortability on the back foot which is bad for an organization.
If, the employee morale is down making them demotivate which result in bad working environment, las profitability. Them managers put more pressure on employees to enhance the percentage of profit and vice-versa.
There are number of behaviors which works well for every organization
The employee with this behavior have a commitment to stay, learn, grow and prosper with an organization. By adopting this behavior, the employee turnover rate will be decrease.
All the times TSS is indulged with the customer complaints within the hard supervision of managers. By this behavior, the company gives a task to TSS instead to supervise personally. By completing the task employees feel the power of authority to do work within the timely manner which is assigned to them by the organization.
This behavior is very beneficial for the organization. An employee occupying this behavior do extra efforts and gets highly involved in work. Doing sacrifices for the organization by doting overtime to make company’s reputation high. By achieving one of these behaviors an organization get to achieve their goals.
5. Describe the various components of your client's existing compensation and benefit systems?
Usually the components of compensation are Base pay, performance pay, Indirect pay.
The Director of Marketing, the Regional Sales Manager, the Branch Sales Manager, and The Sales representatives are mainly compensated on the volume of new installations of machineries and volume of service contracts sold.
TSS get a low monthly salary.
Some managers get monthly salary with bonuses also.
The bonuses are relay on the productivity, sales and services charges. If the company can meet the target of these components, then the earning will be double. Then the organization use these profits for compensation systems.
Branch Sales Manager charge against their sales revenues and 'transfer' these monopoly to the sales training function.
6. Does their current compensation system support the employee behavior they are looking for? Is it in alignment with their managerial style?
The current compensation system of DCCL did not support employee behavior because of the ‘low morale working environment’. Moreover, this event did not align with the managerial strategy.
7. Are there any other constraints that might impact your compensation strategy?
The company should pay to employees as per the workload. The employees should get a salary including bonuses, Incentives, cash prizes, Vacations, job appraisals because it works as a motivation for employees to do their job by the free mind. It is also encouraging workers to gain membership behavior which decreases the employee’s turnover.
There should be a good communication between employees and the power distance of the organization should also be decreased to make a citizenship working environment.
It is the responsibility of DCCL to provide their workers with a superior quality of machinery because the quality of the product is depending upon the condition of technology present in the organization. Unfortunately, the condition of the Machinery is no good all the times TSS is stuck with the repairs of the equipment and fulfills customer complaints.