Case Study on Job Design and Labor Cost Trimming at Shearwear
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Added on 2023/06/09
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This case study analyzes the job design and suitability at Shearwear and the impact of labor cost trimming on the company. It also discusses the pay arrangement and reward system designed for the employees.
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Running head: CASE STUDY CASE STUDY Name of the Student Name of the University Author Note
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1CASE STUDY Table of Contents Answer to Question 1: Job design and suitability...........................................................................2 Answer to Question 2: Labor cost trimming and after effects on the company..............................3 References........................................................................................................................................5
2CASE STUDY Answer to Question 1: Job design and suitability In the given scenario, it can be observed that the company wants to provide quality services to the customers in order to fight against the prevalent competition but at the same time it wants to cut down the costs as well. A scenario of job design would not work well with the company at the present point of time. According toAlfeset al.(2013), job design can be described as a procedure whereby the different human resource managers tend to change the design or form the design of a job. This refers to the task of looking into the kind of work which is required to be performed by the candidates and the employees in the organization. A popular approach of job design is the job enrichment approach. According toPurce (2014), job enrichment can be primarily defined as a procedure whereby the job responsibilities of an individual are increased and extra motivating factors are added up to the job of the individual. Using the job enrichment policy and technique organizations often add more responsibility and freedom to the job and has proven results to increase motivation. As observed in the case study, the motivation level of the present employees is comparatively low although they are very committed. However job enrichment approach of job design will not be a suitable move for the management of Shearwear towards its employees because of the given reasons: The high turnover rate of the management According toKramar (2014), the current rate of turnover at the managerial level is very high and due to this reason, the application of the job enrichment idea is not a positive one. This is because, the employees might think, and that due to the inability of the managers, they are being given additional responsibilities which may work against the intention. The existing lower morale among the employees
3CASE STUDY The employee morale is already quite low among the workers and enrichment with additional responsibilities may come off as an additional burden to them. It will be difficult for them to trust the managers. Answer to Question 2: Labor cost trimming and after effects on the company Reason why it happened At Shearwater, the morale of the employees has remained comparatively low and they are being forced from the management to reduce its costs and thus, the managing director had decided to look into the different spheres in order to determine the areas where costs could have been controlled. After analysis it was observed that the about cost is the only cost which can be trimmed. Impact on the company and Assurance given Hence, the management went ahead with the task and promised the staff that the orders were good for the medium time range and hence, redundancies shall be avoided. Hence, a new pay arrangement was designed for the different staff members with the help of a periodic management review. According to the case study, this review was done after a follow-up consultation with the council comprising of the union as well as the non-union representatives. Payment decisions After the joint decision was made, the pay arrangements were agreed upon and the following were laid down: The staff involved in the manufacturing organization will be paid on a basic pay rate which will be adjusted accordingly with the inflation rate.
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4CASE STUDY They shall be paid based on shift premiums There will be overtime payments for them whereby the different employees will be paid extra payments when they indulge in overtime (Jackson, Schuler and Jiang 2014). Other such allowances shall be paid to employees in order to help them to earn more than their basic pay. Furthermore, a reward system will be design which will serve as an opportunity to the employees to earn more than their present pay. According toRenwick, Redman and Maguire (2013), this shall not only motivate them monetarily but also intrinsically. The given pay structure was deemed to have a two way impact by not only decreasing the costs of the firm but also lift up the morale of the employees.
5CASE STUDY References Alfes, K., Shantz, A.D., Truss, C. and Soane, E.C., 2013. The link between perceived human resource management practices, engagement and employee behaviour: a moderated mediation model.The international journal of human resource management,24(2), pp.330-351. Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human resource management.The Academy of Management Annals,8(1), pp.1-56. Kramar, R., 2014. Beyond strategic human resource management: is sustainable human resource managementthenextapproach?.TheInternationalJournalofHumanResource Management,25(8), pp.1069-1089. Purce,J.,2014.Theimpactofcorporatestrategyonhumanresourcemanagement.New Perspectives on Human Resource Management (Routledge Revivals),67. Renwick, D.W., Redman, T. and Maguire, S., 2013. Green human resource management: A review and research agenda.International Journal of Management Reviews,15(1), pp.1-14.