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KPIs should relate to organizational aims and goals

Discuss about the Poor and Negative Morale in Workplace.

In the given study, the organisation wants to develop new department training and development. Consulting the team for business proposal and also asking the suppliers to increase the supply of raw material to foster production also negotiating for the prices of the bulk raw material if purchased. Key performance indicator (KPI) should relate to organisational aims and goals. When SMART (specific, measurable, attainable, relevant and time-bound goals) and KPI are combined it becomes easier to adapt organisational change. Contingency may lead to Assess the problem- the gap between the standard performance and actual performance and also providing the solution to the given situation. Organisation must have decided what is to be achieved in coming years through financial analysis.

Operational plans are associated with the lower level of management. Steps should be taken to specify actions to achieve the specific results. Efficient human resources with adequate amount of labours. In the given case 8% increase in sales till 2011 can be achieved through consistent human resources, existing labourers must no leave the organisation till it is achieved. Otherwise, new labourers will require training which will lead to wastage of time. Labour turnover should not be very fluctuating (Rosen, 2017).

To achieve more sales organisation should produce more. Organisation may require more raw material, skilled labourers and funds than the existing to make sales and satisfy consumers. The organisation should have the adaptability to changes in the market. The given organisation also believes in retention of consumers, which can be attained only if the quality of the product is maintained. The organisation is finding difficulty in identifying the best recruitment company, it has to stable its requirement which will help to reduce cost of changing recruitment Company again and again (Bagher & MacKerron, 2018).

The most concerned person regarding the floor level activities of the organisation is the supervisor. The supervisor can make a operational plan to increase the sales percentage. The supervisor should hold labour turnover. A perfectly well planned can provide direct and clear vision into the goals and targets to achieve. Just planning cannot give favourable results. Supervisor can make teams of labour and then allocate them an certain amount of goods as a target to be manufactured (Libby, 2017).

Consulting the middle managers regarding the strategies to be implemented to achieve the goals. Further, supervisor can conduct workshops to prepare the labourers for the operational plan. Concerning the human resources department for stabilising its recruitment company rather than changing it again and again. Approx. 10 personnels are allotted to recruit in which two are external recruiters and also they are suppliers of the company.

Operational plans are associated with lower levels of management

Before finalising any decision, the supervisor has to take into consideration the advices by the employees, managers and suppliers. The feedback helps the operational plan to be clearer. Through consultation, supervisor is able to know the capacity of labourers. The efficiency of the labourers per day to sustain on the machines. The feedback from the employees is also necessary because ultimately labourers are the individuals who can create the maximum production.

KPI should be both qualitative as well as quantitative. In the given case study, the organisation is trying to develop training and development department.

  • Human accounting method - This method indicates how much worth is contributed to the amount of sales and customer satisfaction. This calculates the worth generated by the employee to the organisation.
  • Ranking method- This method is one of the most common. Ranking is based on the performance. Higher performers are rated 5 star or 4 star whereas low performers are given 1 star or no star.
  • Managing the underperformance- Managing and fulfilling the losses through underperformance is mandatory. For solving the problem, first there is a need to identify the problem. Whether it is the employee`s inability or task given to employee was disaster.
  • Termination of the employee- If employee is not at all able to cope up with the standard performance and is not able to work on deviation. The termination of the employee becomes mandatory.

To achieve the strategic plans organisation should do enterprises resources planning binds different segments of the organisation such as planning, inventory, finance, logistics and sales. Organisations should do expert hiring to make more efficient plans to grow sales. The organisation should focus more on permanent recruitment rather than temporary. The labour turnover should be reduced to lessen the cost of training new employees. The company can face cost overruns if enterprise resource planning is not followed (Dale, 2016).

Employers, investors, managers and the owners of the company are to be consulted for a new business proposal. To ensure that all the consultants have clearly understood the business proposal. One has to wait for the feedback either in form of suggestions and complains.

Smart goal to measure the team members demonstrate an understanding of the proposal

It is to stabilise a linkage between employee growth and development of the business. Business should make incentive plans, employee stock purchase plan and dip plan for the welfare of the employees. Incentive plans is to motivate employees and also growth business through expecting high from the employees. ESPP is a plan in which company`s stock can be purchased by an employee with a discount (Kim & Ouimet, 2014). Employees are also provided DIP plans in which a certain amount of employee`s pay is saved by the company and paid later on when retried (Meidner, Hedborg & Fond, 2017).

Two external recruiters who were suppliers also. Now suppliers have lowered its recruitment. Communication is the best way to solve any problem especially when dealing with suppliers (Hill & Alexander, 2017).

  • Communication creates transparency on both sides of the party. Pointing fingers against each other can ruin the relationship of suppliers and organisation. Procurement department should give more priority to suppliers. Good relationship with the suppliers will always benefit the organisation to get good raw material.
  • Settling the suppliers account, there should be no delay in payment.
  • Monitoring the financial position of your supplier and returning the damaged goods politely rather than abusing them.
  • Rating method- rating method is based on the comparison where every employee is given a rating according to the performance. Good performers are given five star or four star. This rating is done by people working in the organisation.
  • Management by objective- Management by objective identifies the individual goals. After identifying the goals, the resources are arranged required for accomplishing those goals (Cascio, 2018).

To measure the performance of the employee. A standard objective which leads the whole performance. Actual performance is measured in terms of standard set performance. If any deviation occurs. Actions are taken to fulfil the deviation.

  • In operational activities, a particular amount of production is set, employees have to accomplish the required production in a particular time-bound.
  • Total quantity management- TQM measures the long term goals achieved through customer satisfaction. It focuses on improving the product quality and also the processes of achieving quality. It is process centred (Employee engagement, 2017).

Financial analysis helps in identifying whether it has achieved high turnover, maximised the market share. The purpose of financial analysis is to check whether the cash outflow of expenses is controlled or not. Monitoring the financial statements of the organisation reveals the situation whether the firm is working well or not. For example- More reserves and surplus may be a signal of improving future expansion and development or on the other side it can also reveal that it is not paying dividends to its shareholders (Adrian, Covitz & Liang, 2015).

Efficient human resources with an adequate amount of labor

There are many factors which affects the lack of performance in employees-

  • Inadequate Resources- sometimes targets are set but the resources becomes short during the process which creates lack of performance by employees.
  • Poor selection of team members- Sometimes teams are classified randomly. Firstly, the ability of employees should be judged and then team should be made accordingly.
  • Outdated technology- Old machinery may get damaged due to more usage of machinery during processes. To get productive and efficient employee. It is important to handover the right tools to the employees.

Every individual face problems in new jobs, it depends on self and leaders to solve their queries politely-

Open communication- Organisation`s environment should be comfortable and friendly. It is common to have problems on the part of employees, but leaders and managers make it comfortable if they try to comfort them by solving their problems (Long, 2018).

Growing incentives- Doing the same work to earn same livelihood becomes a boredom. Incentives and promotion makes the employees more efficient. Putting more efforts and benefiting the organisation promotes the employee to higher level (Swartout, Boykin & Dixon, 2015).

Conclusion

Proper planning of operational methods is mandatory if an organisation ants achieve more production as well as more sales. There are various factors which affects the production and sales- Resources should be identified just after deciding the goals. So that, it does not affect the continuing process of operation. Focusing on customers demand will continuously improve the productivity of the employees. As per the case study, improving the relationship between suppliers and organisation is very important. For expansion, with the increasing demand, organisation opened its operation at two different places.

References

Adrian, T., Covitz, D. & Liang, N. (2015). Financial stability monitoring. Annual Review of Financial Economics, 7(1), pp. 357-395.

Bagher, M. & MacKerron, G. (2018). Outsourcing and the Flexible Firm; The Financial Services Industry. In Positive and Negative Aspects of Outsourcing. 71(5).

Cascio, W. (2018). Managing human resources. UK: McGraw-Hill Education.

Dale, B. G., Papalexi, M., Bamford, D. & Wiele, A. W. (2016). TQM:‘The Introduction and a Framework for TQM’. US: John Wiley & Sons.

Employee engagement, (2017). 6 Reasons Employees Lack Morale and How Fix It. Retrieved from: https://gethppy.com/employee-engagement/6-reasons-employees-lack-morale-and-how-fix-it

Hill, N. & Alexander, J. (2017). The handbook of customer satisfaction and loyalty measurement. US: Routledge.

Kim, E. H. & Ouimet, P. (2014). Broad?based employee stock ownership: Motives and outcomes. The Journal of Finance, 69(3).

Libby, R. (2017). Accounting and human information processing. In The Routledge Companion to Behavioural Accounting Research.US: Routledge.

Long, N. (2018). Poor & Negative Morale in the Workplace. Retrieved from: https://smallbusiness.chron.com/poor-negative-morale-workplace-11381.html

Meidner, R., Hedborg, A. & Fond, G. (2017). Employee investment funds: An approach to collective capital formation. US: Routledge.

Rosen, S. (2017). Strategic Operational Planning: Why Healthcare Organizations Need to Adopt this Dual Approach Under Population Health Management. Journal of Medical practice management. 33(1).

Swartout, S., Boykin, S. & Dixon, M. (2015). LOW MORALE IN ORGANIZATIONS: A SYMPTOM OF DEADLY MANAGEMENT DISEASES?. International Journal of Organizational Innovation, 8(1).

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