A young high-tech company, Tattoo, has grown rapidly during the last few years and it is very clear that the CEO, Paul, has kept the entrepreneurial spirit of the company. Due to the rapid growth, there has been a restructure of the company with now three managers in three business units; although, the managers are in charge of applications, communications and Internet solutions, Paul is still the single point of contact for all staff and has the final say in most decision, making it very difficult for the managers to do their job.
In the recent months, Paul has notice that the employees are not motivated and are loosing the passion and enthusiasm they had shown for the firm in the past, furthermore, a few people have left the company already. In a recent case, one of the Java developers had expressed dissatisfaction with his salary and although Paul Increased his salary, the employee decided to leave anyway. An action Is needed and drastic changes have to be made on Human Resource (HRS).
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Marc's Case Apparently, there must have been something wrong which led to a result where Marc decided to resign anyway although Paul had offered him a raise in salary for 15%. One of the possible reasons would be because Marc felt that Paul did not pay enough attention to his case. Paul did not handle Marc's situation promptly and held it for few days. Marc might have felt that he was again being neglected and had lost his trust for Paul.
The second reason is that Marc's manager, Lisa, did not pay attention on the condition of her subordinates wellbeing, which might have caused by Pall's decision to take all the human resource Issues directly into his own hands. Lisa did not even notice Marc's intention to leave the company and also has not had a anger-subordinate talk with Marc for a long time since she has been busy focusing on business development work. There Is no a proper human resource management and salary system in the company so that employees performance could easily be overlooked or unnoticeable.
However, Paul should prevent of losing Marc because the situation states that it is very hard to find an experienced Java- developer in the market. He could start by having a sincere talk with Marc, in person, and try to figure out the real reason behind Marc's resignation, whether it was only because of unsatisfying wage. Was this a sole case or general issue? Paul could also try to find some feedback from Marc about the him/company/the managers. They could figure what to do next by firstly clarifying the above Issue.
Next, Paul should delegate the department's people issue to Its manager. Lisa should be able to focus her work not only on the tasks but also on her team's people Issue. Low Employee Morale As described previously with Marc's case, It Is obvious that the company's reporting lines are not formalized, this creates a little friction between Paul and the unit need the approval of Paul. Those managers might feel that they do not have enough impact on the organization's performance due to the over-controlling nature of the CEO.
As companies grow, it is very important to set in place a plan where the newly developed business units have managers that are autonomous and able to manage projects, personnel and budgets, but not without a proper guidance and performance evaluations. Since there is no clear role for RE in the company, it is very difficult to identify the changes of personnel internally and externally. For example, it is known that there has been unhappiness and denomination among employees, but body does a real enquiry about what is really happening.
On one hand, there are some internal issues like the interactions of Paul with the staff and how the staff is feeling less in touch with management; on the other hand, a few employees have complained about their remuneration, but no one has done a research about the changes of the local IT Job market and make an adequate adjustment. As employees feel that they are not being recognized by their work, not Just monetarily, but when they feel neglected and unappreciated, they will show denomination, a loss of their ensue of belonging and loss commitment for their company.
A Mid-Term Plan
We are playing a role as a consultant in this case. We would suggest and help TATTOO or Paul to improve his company system, which would benefit himself and the whole company, using Engagement Principles:
- Introduce and socialist the company's vision, mission, and goal to the employees as often as necessary to create an understanding for the employees about their employer and company. Let the employees embrace the broad picture of the company and help plant a sense of belonging towards the company. What is Tattoo meaning?
- Create a system where the company and employees would be able to keep track on employees' performances. The company should be able to know how capable and competence their employees really are, also to give proper support to the employees skill improvement, if necessary. The employees need to be able to feel that they gain adding value by working in Tattoo. Set up an effective performance evaluation system for employees. E. G, Marc and other employees should be able to know and feel that their works are appreciated and rewarded.
Implement a feedback chem.
Tattoo will benefit a lot from getting the employees' feedback. Tattoo needs to encourage and motivate the employees to give feedback or suggestion about their company, could be by giving incentives for the special effort. E. G, Today's employees would feel their voice are heard by the feedback scheme. Tattoo would get some good insights, which could help improve the company. 4. Set up a clear organization structure and Job description. Once Tattoo came up with a fix organization structure and Job description, they must be consistent and committed to it.
It involves a total Job delegation will stimulate initiative taking within clear boundaries. It will create a sense of discipline among the workers and also enable people to make an informed choice. E. G, Lisa and other managers should be able to handle their team issues and tasks without Pall's full interference. The above are the core ingredients to create and manage engaged employees. Engaged employees will lead to a better and healthier working environment. It would also help to improve the Tattoo company system by having an HRS person or, better yet, better organized.
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