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COMM 2500 : Organisational Behaviour

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COMM 2500 : Organisational Behaviour

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COMM 2500 : Organisational Behaviour

2 Downloads7 Pages / 1,501 Words

Course Code: COMM 2500
University: The University Of Adelaide

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Country: Australia

Question:
Your task is to prepare a report for Reynaldo on the ­potential effectiveness of her cash reward and ­structured-interview programs. Make certain it is in the form of a professional business document that you’d actually give to an experienced manager at this level of a fairly large corporation. Reynaldo is very smart when it comes to managing finances and running a plumbing business, but she won’t necessarily know about the organizational behavior principles you’re describing. Because any new proposals must be passed through top management, you should also address their concerns about cost containment. You’ll need to make a strong evidence-based financial case that changing the management style will benefit the company.
Answer:

Introduction: 
The aim of this assignment to understand what issues DrainFlow is facing. DrainFlow is a large commercial and residential plumbing firm that operates its business in United States. The organization has been the key player in the plumbing industry but recently the work culture of the firm is affecting the organization and their employee in providing customer satisfaction. The employee retention in the organization is less and the customer satisfaction is also less. The customers are willing to shift to the rival companies. To stop this issue Lee Reynaldo will introduce an incentive policy, which will help to motivate the employees.  
Discussion: 
Employee satisfaction is one of the most vital aspects that a company should understand and work for it (Men, 2014). Without proper job satisfaction the organization will not be effective. Nowadays organizations like Google, Microsoft is highly focusing on increasing the effectiveness of their employees by providing them employee friendly atmosphere.
DrainFlow is a large commercial and residential plumbing firm that operates its business in United States. The organization has been the key player in the plumbing industry but recently the work culture of the firm is affecting the organization and their employee in providing customer satisfaction. Lee Reynaldo the regional manager who has also worked for the rival company Lightning plumber is not happy with the work environment. According to her the job environment is not as energetic as she saw in the lightning plumber. She thinks that the employee are not so much motivated and when she carried out a survey the result show that the customers 40% of their customer are not satisfied with their service delivery.
Job satisfaction:
It has been seen in the past researches that the job satisfaction is very much necessary for the employee to achieve or deliver the performance that the organization is wanting from them (Pan, 2015). In DrainFlow, the employee job satisfaction is very low and it is one of the reasons the employees are failing to deliver proper customer satisfaction. Low job satisfaction decreases the skilled employee retention rate.
Researches have shown that the employees who are satisfied with their work environment are 12% more effective than the unsatisfied and demotivated employees (Kiruja & Mukuru, 2018). The employees who are satisfied with their organization are tending to take more responsibility and works hard to increase the reputation of the company. Failed deadline is one of the major issue and many organization face this issue nowadays, however researches have shown that the employee who are satisfied with their jobs tend to work in longer shifts to meet the deadlines (Poola et al. 2014).
Issues faced by the organization:
 The organization is facing some major issues- lack of employee job satisfaction resulted in decreased employee retention and dissatisfaction among the customers who are targeting to switch to its competitors (Das & Baruah, 2013). Both the issues are related to one another. Dissatisfied employees are failing to serve the customer effectively, which in turn is forcing the customer to give negative feedback to the workers creating dissatisfaction and unnecessary stress among the workers.
The employees who are less motivated to do the job are also less motivated in achieving the objective of the organization. One of the major reasons behind the job satisfaction of the employee is the DrainFlow’s job design. Drainflow consists of four different job roles- plumber, plumber’s assistants, order process and billing representative. All the job roles at DrainFlow are interlinked with one another to perform the job effectively.
The Job satisfaction model will help to explain the five different core dimensions of the job:

Task identity
Skill variety
Autonomy
Task significance
Feedback

The plumber and the plumber assistant have scored high on the task significance, identity and the feedback. The plumbers and the assistants should attend the customers that they are assigned. However, the problem is that the jobs are often mismatched. For example, sometimes the plumber’s assistants are assigned for a difficult task, which they are unable to perform, whereas the plumbers are assigned for a lot easier task.
The processors and the representatives have scored less on the task identity. Their involvement in the whole process is less and the responsibility for the work is also less. The feedback for the order processors is very much limited. Plumbers, plumber’s assistants and the billing representatives are less in the autonomy as they are dependent on scheduling for other jobs. Overall, the high specializations have caused less skill variety for all the jobs in the organization.
However, the present job design at DrainFlow is simple but the coordination in the different job roles are lacking. Employees are not seeing the entire working process and the outcomes of their own effort. It can be improved by the process of job rotation. DrainFlow can increase the skill variety if they rotate they rotate the employee from one task to another in a continuous basis. This will also help them to effectively understand the customer’s needs and will help to assign the jobs accordingly.
Recommendation: 
Cash reward can help the organization in improving the motivation of the employee and will bring a customer-centric approach in the organization. Cash rewards will be distributed on a monthly basis to keep the motivation high for the employee. A plan has been made to measure the performance and cash rewards will be provided to each of the job roles.  

Plumbers and assistants- The satisfaction of the customer will be measured and analysed by the billing representative. A standard cash reward will be given to all if there is no record of complaints. This is vital as the organization is losing more than 30 % of its customer to the rival companies. Scale of 1 to 5 can be used while recording the feedback of the customer (Aguinis, Joo & Gottfredson, 2013).
Order processors: The cash reward for the order processor will be given if they successfully completed 20 orders.
Billing representatives: The billing representatives will be given rewards on the base of number of feedback forms the customer provided.

The bonus pay will not only be linked with the personal achievement but a part of incentive will also need to be given to the overall performance of the team. This will boost their confidence and will help in retaining employee and building a good work environment.  This will be linked to the customer retention and positive feedback from the customer.
Advantages and disadvantages of Cash incentives: 
Advantages:

It is a great motivator for the employee (Fehr, Herz & Wilkening, 2013).
It does not require any specific personalization; every employee will be paid depending on their performance.
It will help the organization in retaining the employee in the organization.
A good incentive policy will attract more customers in the organization.
Monetary incentives help in achieving the short-term goals and objectives of the customer and also increase the effectiveness of the employees.

Disadvantages:

When it is used in a continuous way the incentives are seen as the entitlement rather than a motivator.
Implementation of the incentive structure is often costly and  it takes a lot of time and focus to accurately calculate and track that the employees are paid the right amount (Sikora & Ferris, 2014).

Conclusion: 
The topic discuss about the DrainFlow employee related issues. DrainFlow is a large commercial and residential plumbing firm that operates its business in United States. The organization has been the key player in the plumbing industry but recently the work culture of the firm is affecting the organization and their employee in providing customer satisfaction. Lee Reynaldo has come up with a cash reward system which will help in increasing the effectiveness of the workers and retaining the employees. Cash reward will be given to all the employee of different job roles so that they get motivated and work hard for the organization.
References: 
Aguinis, H., Joo, H., & Gottfredson, R. K. (2013). What monetary rewards can and cannot do: How to show employees the money. Business Horizons, 56(2), 241-249.
Das, B. L., & Baruah, M. (2013). Employee retention: A review of literature. Journal of Business and Management, 14(2), 8-16.
Fehr, E., Herz, H., & Wilkening, T. (2013). The lure of authority: Motivation and incentive effects of power. American Economic Review, 103(4), 1325-59.
Kiruja, E. K., & Mukuru, E. (2018). Effect of motivation on employee performance in public middle level Technical Training Institutions in Kenya. IJAME.
Men, L. R. (2014). Strategic internal communication: Transformational leadership, communication channels, and employee satisfaction. Management Communication Quarterly, 28(2), 264-284.
Pan, F. C. (2015). Practical application of importance-performance analysis in determining critical job satisfaction factors of a tourist hotel. Tourism Management, 46, 84-91.
Poola, D., Garg, S. K., Buyya, R., Yang, Y., & Ramamohanarao, K. (2014, May). Robust scheduling of scientific workflows with deadline and budget constraints in clouds. In Advanced Information Networking and Applications (AINA), 2014 IEEE 28th International Conference on (pp. 858-865). IEEE.
Sikora, D. M., & Ferris, G. R. (2014). Strategic human resource practice implementation: The critical role of line management. Human Resource Management Review, 24(3), 271-281.

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