Business Operations Improvement at Service Adhesive: A Report

This report analyzes the business operations of Service Adhesives Ltd, a mid-sized company facing declining profits due to increasing production costs, loss of competitive advantage, and internal issues such as a below-average workforce, lack of motivation, and poor teamwork. The report examines the company's initiatives, including hiring temporary skilled labor and implementing modern business approaches like Total Quality Management and Lean, and identifies their shortcomings. It then explores the working environment of a successful customer, Happy Products, to identify areas for improvement in Service Adhesive Ltd. The report includes an improvement initiative roadmap, focusing on teamwork motivation and employee improvement. It also addresses potential risks and provides a risk register, followed by recommendations and a conclusion to address the identified challenges and improve the company's performance. The report highlights the need for a transformation to increase cohesiveness, teamwork, and motivation within the organization.

Improving Business Operations in Service Adhesive 0
Title: Improving Business Operations in Service Adhesive
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Improving Business Operations in Service Adhesive 1
Contents
Introduction................................................................................................................................2
Improvement Initiative Roadmap..............................................................................................4
Teamwork Motivation Initiative & Employee Improvement Approach....................................8
Potential Risks & Risk Register...............................................................................................12
Recommendations & Conclusion.............................................................................................19
References................................................................................................................................24

Improving Business Operations in Service Adhesive 2
Introduction
Services Adhesives Ltd is an organization that is mid-sized and has been functioning
for the last twenty years. The organization is mainly involved in producing special adhesives
that are used for FMCG businesses. Therefore, the organization produces “non-irritating” and
“non-toxic” products, as the adhesive has to be used for personal care products, food
products, and many others. The organization thus, fulfill the non-irritating and non-toxic
aspect completely, ensuring the safety of the goods and the consumers. The organization has
developed a niche for itself through its patent adhesive production methods and also for
creating new adhesives and furthermore, building humongous records in its industry. Though
the organization has earned huge profits and the sales of its products are continuously
increasing, but in the last few years, this has been found that the organization’s profit is
decreasing. This has increased the pressure on the top management of the organization, which
has identified two main reasons behind this decrease in profits. Firstly, the cost of production
of the products is increasing and has surpassed the sales revenues, which has massively
affected the profits of the organization. Secondly, the organization has lost its competitive
advantage as the quality of product offered by the organization is being offered by the
competitors at reasonable prices. The organization’s senior managers have identified these
issues and have also tried to implement effective solutions, but all these different approaches
have not helped the organization completely in addressing the two main issues. The
organization has also, implemented new and modern techniques like Lean and Total Quality
Management, but still, these approaches have not provided satisfactory results. In addition to
this, the senior management also recognized that the organization has a “below-average”
workforce, which lacked the skills and professionalism that is required to manage and handle
the current competitive environment. The other problem aspects identified by the
management is the lack of motivation amongst the workforce and lack of teamwork in the

Improving Business Operations in Service Adhesive 3
organization. All these different concern aspects have resulted in a decrease in productivity
and quality, which has directly impacted the profits of the organization. Lastly, one more
thing which is the prime cause of all these different problems in the organization is their
traditional and hierarchical structure of the organization, which had an adverse effect on the
workforce of the organization and also on their organizational processes that majorly
exhibited lack of cohesiveness.
Though the issues of increasing cost of production and the loss of competitive
advantages were identified by the senior managers from the last few years, but the other
problems like lack of cohesiveness, teamwork, motivation, and skilled workforce was
identified by the senior managers, during their visit to one of their customers, that is, Happy
Products. The organization identified the new innovative process followed in the company,
Happy Products, and its impact on the organization’s productivity. The senior manager
though identified that some of the processes followed in the organization Happy Products
were similar but still, there were some differences, which made the processes followed in
Happy Products simpler. The workforce has a clear direction and thus, each employee was
familiar with their purpose, which was the main driving force. The organization has a team-
based approach which increased the level of transparency in the Happy Products immensely
and also, helped in increasing the level of motivation and productivity in the organization.
The working environment in the organization was happier and positive, which each member
have the main aim of fulfilling their team goals initially and then their personal objectives.
Therefore, after analyzing and witnessing the positive working environment in the
organization Happy Products, the senior managers of Service Adhesive Ltd identified some
of the key problems in their organization and the need for improvement in its different
departments. The senior managers realized that the organization was in need of a
transformation that is required for increasing the level of cohesiveness, teamwork, and

Improving Business Operations in Service Adhesive 4
motivation in the organization. Also, this improvement plan will help the organization in
upgrading the standard of their workforce.
Improvement Initiative Roadmap
As the organization has been facing huge problems, which have also highlighted
major threats for the Service Adhesive Ltd in the future, the organization did implement
several initiatives for bringing an improvement in the organization’s functioning and also in
addressing the different issues of the organization (Adams, 2019). Therefore, some of the
major improvement initiatives taken by the organization are –
 Hiring More Workforce on Contract Basis.
In the organization Service Adhesive Ltd, the current workforce has skills
which are below average. In the current competitive world, the competitors have a
high-skilled workforce that has facilitated an efficient working environment in the
competitor’s organization by utilizing the current trends and techniques (Aziz, 2013).
Therefore, the low skilled workforce of Service Adhesive Ltd are reducing the quality
of the product and are also increasing the cost of production due to traditional
methods. The attitude of the current workforce is also very stubborn and this attitude
has become even worse due to the less motivation level in the organization, as the
senior managers do not offer the employee with any motivational factors. Also, due to
the stubborn attitude, the current workforce of the organization did not welcome any
change appropriately. Therefore, the organization started hiring employees on short
term contracts (Bajo, 2015). The organization implemented the initiative of
employing 20 percent of high skilled labor to improve the productivity of the
organization and it will also help in managing the fluctuating orders. These short term
labors brought a positive change in the organization as they were hard working

Improving Business Operations in Service Adhesive 5
individuals and they provided the organization with several opportunities to save cost.
Though this initiative exhibited a huge potential for improvement in the organization
still, this change could not help completely in addressing the different issues
(Beausaert, Segers and Gijselaers, 2011). The high skilled workforce which was hired
on a temporary basis was majorly hired from Poland and the Czech Republic,
therefore there were some language barriers, as all the new employees were not
familiar with the common language. In addition to this, as the organization employed
them on a short term contract basis, therefore, they did not have job safety and
therefore, with a more secure job, the chances of the employees to opt out from the
organization are very high (Cardon, 2018). Though the new employees had high skills
they were not welcomed by the old employees and thus, there was tension between
the old and the new employees, which impacted the overall functioning of the
organization. The other issues associated with hiring a new skilled workforce is that
they will take time to adjust to the working environment of the organization. Also,
this will slow down the functioning of the organization as the new employees will
find it difficult to adapt to the traditional and hierarchical approaches of the
organization (Doosty, Yarmohammadian and Ebrahimipour, 2014). With the new
workforce with high skills, there will be many disagreements with the old approaches
of the organization, also, the employee will face many hurdles in implementing the
new trends and techniques that help in saving both time and cost.
 The New & Modern Approaches to Business like Total Quality Management,
Lean, etc.
The organization also implement new approaches to businesses like Total
Quality Management, Lean, and many more. The approach of Total Quality
Management is extremely effective in increasing the morale of the people (Evans et

Improving Business Operations in Service Adhesive 6
al., 2016). This is possible only if the employees are completely involved in the
organization’s process in a cohesive manner. Also, the main focus of the strategies of
Total Quality Management is on the organization’s processes and functions. The
strategies have to be smoothly integrated into the organization with an equal focus on
short-term and long-term goals (FM, 2015). As due to this, the employees will attain a
driving force that will push them to perform better and this will help in increasing the
quality of the product produced by the organization. But in Service Adhesive Ltd, the
approach of Total Quality Management was not that successful as the organization
followed its traditional and hierarchical approach (Nadesan, 2016). As the
organization did not incorporate the strategies in their traditional approaches, thus the
Total Quality Management strategies did not offer high standard results. The other
factors which affected the success of this improvement initiative of the organization
were the low level of motivation that prevails amongst the employees of the
organization. The strategies of Total Quality Management demands a cohesive
working environment, but due to the negligible involvement of the employees in the
organization’s decisions and strategies, the Service Adhesive Ltd, failed to offer great
results due to these various issues in the organization’s working environment (Noure
Elahi, 2015). The other factors associated with Total Quality Management that the
organization will not be able to manage as is the high cost of implementation that is
associated with this approach. The organization is already struggling to control the
cost of production and with the additional cost of Total Quality Management
strategies, the organization will face even bigger issues, as there will be a huge
disturbance and imbalance in the organization’s financial system (Nouwens et al.,
2014). In addition to this, the Service Adhesive Ltd, are looking for quick results that
can instantly help in solving their major issues, but the approaches of Total Quality

Improving Business Operations in Service Adhesive 7
Management exhibits results at a very slow pace, which can be identified in several
years. This slow pace change will take a time period of years, which will affect the
market position of the organization further as the senior management will have to
follow the complete procedures which will definitely offer the competitors with
various advantages, providing them a further lead in the market (P. Wilson and Beard,
2014).
 Examining the working environment and the different approaches adopted by
the competitors and customers of Service Adhesive Ltd.
Due to the failure of different approaches both old and modern in the
organization, increased the concerns of the senior managers, which finally decided to
analyze and examine the working approaches adapted and followed by an
organization with similar business profile and also, the large business to business
customers of the organization (Sadeghifar et al., 2014). The main motive behind this
approach was to identify the missing elements in the Service Adhesive Ltd, which are
impacting the functioning of the organization and also, becoming the main cause of
failure for all the approaches. With this approach, the organization will try to
understand the different approaches in the other organization, the way they have been
implemented and the overall evaluation of these approaches on the organization’s
productivity and cost control. Through this approach, the organization identified the
new working environment that is utilized by the competitors and the customers (Silver
et al., 2016). In the organization Happy Products, which is one of the largest
customers of Service Adhesive Ltd, the senior managers of the Service Adhesive Ltd
identified that it was the simple and effective approaches that have built a smooth
working environment in Happy Products. The Happy Products have a clean and
cohesive working environment, which facilitated a smooth flow of information and

Improving Business Operations in Service Adhesive 8
materials in the organization, with each employee having a clear direction and a major
driving force. The employees of Happy Products were satisfied with their work as the
organization offered them a work-life balance and different driving force with a clear
purpose and direction. Also, this approach was very effective for Happy Products, but
for the Service Adhesive Ltd, this approach will be effective only if, the organization
replace their traditional methods of working and adapt to a more cohesive working
environment. But, according to the current circumstances in the organization Service
Adhesive Ltd with the old staff who is stubborn and does not adapt to changes, the
approach of adopting other organization’s approach can be a tough task, with the
organization losing most of its workforce (Snow, Fjeldstad and Langer, 2017). The
other aspects associated with this approach is that the organization Happy Products is
the customer of Service Adhesive Ltd, which deals with different products and
services, therefore, it is not completely sure that the approaches of Happy Products
will be effective for Service Adhesive Ltd as both the organization are involved in the
production of different products.
All these different approaches exhibit the improvement initiative roadmap adapted by
the Service Adhesive Ltd for bringing a change in the organization and successfully
addressing the different issues in the organization’s working environment, the cost of
production, the quality of the products, the competitors, and the workforce of the
organization.
Teamwork Motivation Initiative & Employee Improvement Approach
After the organization Service Adhesive Ltd utilized the approach of examining
different organization with similar profiles and also the working environment of the big
customers of its organization, they realized the importance of teamwork and motivation in the

Improving Business Operations in Service Adhesive 9
working environment of the organization and in encouraging the workforce (Bang and
Midelfart, 2017). The senior managers were familiar with the lack of cohesiveness in their
working environment, as the employee’s involvement in the organization Service Adhesive
Ltd, was very less, therefore the main aim of incorporating the team-based approach is to
address these issues (Blašková, Bízik and Jankal, 2015).
With the incorporation of the team-based approach by the senior managers of the
organization, the Service Adhesive Ltd will transform its working environment which will be
very beneficial for the employees. The main strategies adapted in team-based approach are
focused on enhancing the strengths of the employees by capitalizing on them and with the
other focus on reducing the weaknesses of the employees. Therefore, this main approach
helps in effective employee improvement (Erhardt, 2010). The team-based approach
structures the employees of the organization in groups and also divide the objectives of the
organization in small goals. These are the main driving force of the organization which helps
in product development, cost saving, process improvement, and also, offers huge customer
support. Also, the team-based approach will help the organization in avoiding threats and
successfully utilizing the opportunities. The Service Adhesive Ltd identified the team-based
approach in Happy Products and utilized it for building a strong and powerful team, which
help in fulfilling the objectives of the organization (Faletar et al., 2016).
In the organization Service Adhesive Ltd, there are five layers of management that are
involved in the organization’s structure from top to the bottom level. These layers of
management restrict the employees to work in teams and also, due to the different level the
employees are dictated by the top level managers, which affects the motivation and the
productivity of the employee (Hellman et al., 2016). With the team-based approach, the
organization will be forced to eliminate all these different layers of management, which also
develops a smooth working environment as it ends the process of multiple approvals. Also,

Improving Business Operations in Service Adhesive 10
the organization will be able to develop a cohesive working environment with less
administrative cost and will also streamline the processes. With all these different approaches
the employees will feel empowered and respected in the organization which will further
accelerate their morale (Jarbi, 2016). This is due to the focus of the team on similar goals and
also, it will reduce the interdepartmental conflicts which affects the functioning of the
organization. In Service Adhesive Ltd, there are issues and conflicts between the new and the
old workforce, with the team-based approach all these different issues will be solved
effectively. Also, if there are conflicts that emerge between the teams then they are solved
amongst themselves without the need for intervention by the senior management (Leach et
al., 2018). Though the team-based approach will help in motivating the employees,
developing a positive environment in the organization, and also enhancing the productivity of
the employees, at times the conflicts between individuals in a team due to distinct
personalities can hinder the organization’s processes and the overall growth of the
organization (Mayo and Woolley, 2019).
Currently, in Service Adhesive Ltd, the employees do not have a clear vision or
direction. The employee was working with no purpose. This has impacted the productivity of
the employee which has directly impacted the organization’s objectives. With the team-based
approach, all the employee will have a purpose, which will act as their driving force that will
encourage the employee to continuously work on their goals and also improve their working
approaches (Mayor, 2017). This approach will help the employees in reducing their
weaknesses and developing an excellent working environment. The team will function
effectively towards fulfilling the different goals. Though the team-based approach is
appropriate in improving the employee’s productivity by improving the standard of the
workforce in the organization, but due to this approach, the organization will not be able to
identify the under-performing employees which will hide under the great result of a team in

Improving Business Operations in Service Adhesive 11
which the under-performers would have hardly contributed (McFarland, 2014). It is due to
some of the employees who will depend on the work of hard-working employees, as the main
milestone for the team-based approach is the goals that are set by each team which are
common for all the team members. Also, many a time, due to the dependency of a non-
performers in a team there are issues which emerge in the schedule of the team and the
repercussion of this are faced by the entire team.
Every organization has a diverse working environment. In Service Adhesive Ltd, the
majority of the employees were hired from the European Union states like the Czech
Republic, Poland, and many more (Stachowska and Czaplicka-Kozłowska, 2017). Now, the
cross-cultural working environment is a boon in the current competitive world, but due to the
diverse personalities of the individuals, there are problems which are bound to emerge. For
instance, there are some individuals who cannot function in a team. They productivity is at
the highest when they work individually. Therefore, when such employees are forced to
function in a team then the main problem that arises in such circumstances is the lack of
communication. Due to this, the organization suffers as the processes are a slowdown. Also,
an employee’s productivity is reduced immensely (Temminck, Mearns and Fruhen, 2013).
In the team-based approach will also be very helpful for the organization Service
Adhesive Ltd in managing the fluctuating orders. It is due to the aspect of a team-based
approach that facilitates an organization with the opportunity of dividing and utilizing the
workforce according to the need of the orders (Van Eeghen, Littenberg and Kessler, 2018).
Also, due to this, the organization will be able to divide its employees between action-
oriented, people-oriented, and thought-oriented individuals. All these different employees
will help in reducing the different problems in the organization and fulfilling the orders
effectively. This also increases the organizing standard at Service Adhesive Ltd. Though all
these different aspects will be fruitful for the organization in developing a more organized