Blue Flowers (Pvt) Ltd Essay

1783 words - 8 pages

TABLE OF CONTENTS
Management issues .................................................................................................... 2
Suggestions for management issues ........................................................................... 5
References ................................................................................................................. 9

MANAGEMENT ISSUES
The management issues faced by Blue Flowers (Pvt) Ltd are,
1) The organizational incentive system is not aligned with corporate vision
The company vision is “to be a leading manufacturer of world class quality
artificial flowers in South Asia by year 2020”.To attain this vision they company
...view middle of the document...

Other than top management the
others may be lower end workers. The understanding of those technical words,
formulas, systems and English knowledge of those workers may be problematic.
Before implement the incentive scheme should consult with staff and trade
unions. But this company planned and implemented the system as their
willingness. Because of this trade unions actions were arose and workers viewed
that this is not an incentive scheme but just another way of exploiting labor.

2

4) Incentive scheme is not differentiated
Company has paid same incentives for the all departments. The lower end
workers are not reaping any benefits of this incentive scheme and other
department people (Purchasing, accounts, sales and HR) have enjoyed more of
this. Incentives are a performance based pay. But those who contributed more
(Production department employees) have not been treated well. This was not
emphasis the just and equitability.

5) Incentives are not paid on time
Incentive scheme should be considered about the time between results and
rewards. Company should reward employees once the agreed targets are met. But
in this company employees complained that accounts department not pays the
incentives on time.

6) After an incentive program was introduced the production rates has been
gradually increased to some extent (32%) and again has felt down (20%)
Top management was unable to get expected output from the incentive scheme.
The production rates of the first 3 months were gradually increased, but the 4 th
month onwards it has been came down.
1st month – 20%
2nd month – 30%

+ 12%

3rd month – 32%
4th month – 28%
5th month – 20%

- 12%

6th month – 20%

7) Superior bias on some employees
As per employees’ complaint the supervisors are branding the products as rejected
or low quality purposely. This leads to performance feedback errors and because
of this cannot reward for the better performance. Biasness leads to frustration
among other employees and they will be demotivated and finally effect on lower
quality and productivity.

3

8) It is not conducive to employees health
Workers complained that some managers and supervisors consider workers as
machines and expect that level of constant uninterrupted work. An incentive
scheme should not be harmful to health of employees. But here employees did not
have interval between working hours and it was too hard to employees to perform.
This leads to lower productivity.

9) Increased the lower quality of production and rejects rate
After implementing the incentive scheme the rejects rate has increased by about
10-15%. Unable to meet expected quality level is a greater problem to achieve the
goal and it is more cost effective.

10) No proper grievance handling procedure
There was no effective grievances procedure and that is why employees went
through the union actions even for small problems. Some union action have been
taken by asking...

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