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ASSIGNMENT QUESTION CASE STUDY Jones and Co. Ltd is an engineering firm manufacturing component parts in the steel industry. The company has a good reputation for the reliability of their products, and has enjoyed a steady increase in exports over the last five years. The home market has been rather depressed during the last two … Continue reading “CASE STUDY | My Assignment Tutor”

ASSIGNMENT QUESTION CASE STUDY Jones and Co. Ltd is an engineering firm manufacturing component parts in the steel industry. The company has a good reputation for the reliability of their products, and has enjoyed a steady increase in exports over the last five years. The home market has been rather depressed during the last two years and there is concern over the state of the order book. The view is that unless there is an upturn in demand in about six months time, a reduction in the workforce would seem inevitable. However, it is estimated that there could be an increase in export orders in the next year to eighteen months. The company was founded 20 years ago by two brothers. One is the Managing Director, the other is the Production Director, and both are due to retire in the next five years. The other four Directors have displayed a high degree of commitment to the company, having given service between 10 and 15 years. The company style has tended to be highly centralized, autocratic and traditionally profitable. The labour force has increased steadily from 200 to 600 over the last ten years. The Managing Director has an engineering background and has not received any formal training in human resource management. He believes that the best way to deal with employees is to use ‘the personal approach’ and prides himself on being a ‘good communicator’. Five years ago a Human Resource Manager was appointed but the appointment was not successful. The Directors argued that he was intervening too much with their own personnel management role; there was constant friction with the Human Resource Manager and uncertainty amongst the workforce. In less than a year the Human Resource Manager resigned. Employee relations have been good since the inception of the company, and there is no history of industrial unrest. The work-force is non-unionized and there is a consultative committee which meets with management on an ad-hoc basis. The chair of the Employees’ side is Peter, who has traditionally had very few problems brought to his attention. He is, however, becoming concerned over some issues. He notes that there seems to be an increase in labour turnover amongst the skilled staff, although nobody seems to hold any records. Pay is probably not the issue as it remains competitive, although he did hear one of his colleagues receiving additional pay on the basis of ‘good work’. The economic situation of the company is worrying, with the associated concern about job security, although it is difficult to ascertain the precise situation. Even his own line manager seemed to be unsure. Questions: Answer the below question with reference to the above case study: (a) Critically analyse how Performance Management System (PMS) and team spirit at work can be considered as effective means to boost the level of profitability for the Jones and Co. Ltd.

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