Secondary Research:
- Review of the problems faced by Ocean Exim India Pvt. Ltd.
- Comparison of the problem of Ocean Exim India Pvt. Ltd. with other firms.
- Identification of the methods used by other similar firms for motivating their staff.
Action Plan:
Contents
Introduction:
About the Firm:
Ocean Exim is an ISO certified, professionally managed and recognized export house. It started with just one small sized factory in the year 1979 and is now spread over more than 3 locations. The company exports home furnishing products to all the big countries like USA, Germany, France and Japan directly as well as through their overseas office located in USA and Japan.
All the three factories are equipped with the requisite facilities for fabric checking, dyeing, printing, cutting, stitching, finishing and in-house testing. Right from sourcing to dispatch, rigid tests are carried out by the Quality Assurance team so as to conform to the international standards. Ocean also boasts of having an in-house R & D department that has some major innovations to its credit. The company’s chequered history on the export front proves that it can compete with the rest in the world.
Problems faced by Ocean Exim India Pvt. Ltd.
Following are the problems faced by Ocean Exim because of the decrease in labor productivity and increase in labor turn over.
- The company saw a phenomenal increase in the number of complaints from domestic as well as international customers. The complains included:
- Delay in delivery.
- Wrong tagging on the goods(products).
- Poor packing of goods which led to damaging of goods.
- Less quantity received by the customers.
- Trouble in tracking the shipments.
1.1 Number of complains from 2005 to November 2008
- Ocean Exim also experienced a dip in the sales, especially in the export orders from the retailers.
1.2 No. of orders received by Ocean Exim from 2005 to December 2008
Ocean Exim received an outstanding number of orders in the year 2006-07 but on the other hand they received ample quantity of complaints (fig. 1.1) which brought down the number of orders received by the company.
From figure 1.1 and figure 1.2 we can easily see that Number of complaints and number of orders goes hand in hand. The reason behind the increase in the number of the complaints is the decrease in labor productivity and increase in labor turnover. From the figures we can easily make out that the workforce in Ocean Exim is quiet inefficient. One of the major problems faced by Ocean Exim is, the company is not able to send its employees for training consistently because of high labor turnover, and this affects the productivity of the employees. By looking at the problems faced by Ocean Exim we can make out that the firm needs to motivate its workers to increase there efficiency, and keeping the recent economic crisis and the financial crunch under which the global market lies today, Ocean Exim would have to look forward to the non-financial motivators in order to cut costs.
Non- Financial motivational strategies currently followed by Ocean Exim.
Workers can perform there best when they are motivated to do so. Motivation could result in increase in productivity. Failure to motivate the employees could lead to absenteeism, increased labor turnover, poor service and low quality product.
● Ocean Exim does not involve there staff in decision making, although sometimes there opinion are taken but decisions are taken by the senior management of the staff. Sometimes the decision is accepted by the worker some times they stand against it.
● All the workers are not sent for training although, experts from different field do visit the company often and workshop is held, hence giving a chance for the workers to grow within the company.
● Performance appraisal: Ocean Exim does not have a proper system for performance appraisal, although the appraisal basically depends on effective communication, timely execution of the order, customer satisfaction, workers reports from the supervisors and also productivity.
● There is a weekly off on Sundays, sometimes the workers are asked to work on Sunday to finish an order. All the workers are given extra holiday when the work load is less.
● A staff party is organized for the labor every year
With the ineffective non-financial motivators the company is facing a major problem of low labor productivity and high labor turnover.
________________________________________Survey Analysis
Two surveys were conducted separately in the factory unit of Ocean Exim India Pvt. Ltd., Jaipur. First survey was conducted on 25th July, 2008. It was an anonymous survey, so that the results obtained can depict the true picture. However, another survey was conducted after a few days as the prior survey findings were considered incomplete and non reliable. The new survey was translated in the local language, Hindi, and was explained to all workers and labors in detail.
The survey was filled by 50 workers of the firm, including skilled and un-skilled labors. The data obtained from the prepared questionnaire gave a better insight of the problem faced by the workers. Moreover, the survey findings were indicators of the areas in which the company could motivate their workers and thereby increase their productivity, benefiting both the company and the workers, simultaneously.
Survey Findings:
Survey helped me in understanding the problems faced by the employees, here are some important findings which became an important part of my evaluation process.
1.3
Figure 1.3 shows that there are very few employees who are associated with the firm from a very long time. This shows the increased labor turnover of the firm.
1.4
Majority of the employees felt that the interaction is very well appreciated but they also felt that it was rare. Frequent interaction would help the firm in boosting up there morale and hence motivating them to work more efficiently.
1.5
This question cleared the fact that one of the main reason for decrease in labor productivity and increase in labor turnover is that the senior management does not give the employees ample amount of time to listen to there personal problem, it could be regarding other employees or some other problems.
Other important findings which came to my notice are as follows:
- Employees are not happy with there working hours.
- Employees feel that they are getting less opportunity to exhibit their skills.
- Employees would like to have few outings with their colleagues, so that they get to build there social network also.
- One major area of concern is hygiene. Employees want clean drinking water and a clean refectory.
McGregor’s Theory X and Theory Y
Douglas McGregor devised Theory X and Theory Y. This theory represents the different assumption that managers have about their employees. This theory actually focuses on management attitudes. Theory X explains negative management attitude whereas Theory Y portrays a more positive approach.
At present Theory X seems more likely to be portraying the condition at Ocean Exim India Pvt. Ltd. I think that the senior management follows more of centralized approach, hence making the work less challenging and less exciting for the employees.
Senior Management (Managers) should adopt Theory Y and make the approach more decentralized. Management should start relying on there employees and make the work challenging for them which will act as motivator for them. Management should also try to get rid of less autocratic style
Maslow’s Theory
Abraham Maslow:
Employees in Ocean Exim generally belong to the level of Security Need, Social Needs and Esteem Needs.
Ocean Exim should set working hours in such a way that it is suitable to both Men and Women. Ocean Exim should take care of its employees by assuring them their job security, maternity leave. Ocean Exim should take care of all those employees who desire to feel safe and stable and try to bring them to next level of social needs.
In order to fufil their social needs, Ocean Exim should organize more outings (picnics), informal meetings, official lunch or dinner, in order to give the employees ample amount to be a part of the society and enjoy his/her life.
In order to fulfil employees esteem needs, Ocean Exim should start appreciating the work of the employees more often and make him/her feel a sense of achievement. In order to make the employees in such a way Ocean Exim should start a ranking method. In addition Ocean Exim should also increase internal promotions.
Herzberg
Ocean Exim should try to focus on making the work more challenging for the employees and the company should also give the employee the variety in what they do, which will help the company to make the work more interesting. By doing this employees would feel a sense of achievement and this would help the firm in making the employees realize there own potential and hence making them self motivated. Employees should be in given a place in the decision making panel which will boost their overall morale. This should help Ocean Exim to increase the labor productivity.
Recommendations
● Ocean Exim should hire a well trained supervisor who could handle the labor problem conveniently and can present the problem to senior staff with some solutions already figured out for that.
● Conveyance facility like an office bus or a van should be started which will make conveyance more convenient for the workers, and this may reduce absenteeism also.
● Cafeteria should be well maintained with fresh food, fruit juices, and cleaner.
● Company should give employees more responsible work, i.e. more opportunities which will boost employee’s morale and may result in the productivity.
● Employees should be paid for there overtime work.
● Drinking water facility should be improved.
● Company should provide employees with ESI (Employee State Insurance), and provident funds. (Delete)
● Separate time should be spent with the employees to listen to there personal problems.
● Company should promote schooling for children of the employees and those who can’t afford it, and then company should help financially.
● Cultural programs, outings and reward functions should become a common practice; this will help employee’s interaction among each other and among the senior management also.
● A suggestion box should be added in the factory.
● Senior management should listen to employees’ problem separately, which will arouse a feeling of faith and trust among the employees for the senior management.
● Managers should ask workers for their ideas and suggestion when dealing with a particular task or problem. Such participation will allow workers to become more involved an interested in their work.
APPENDICES
Appendix 1
Interview with Mr. Ravindra Nath Gupta (MD)
How old is the firm?
The firm is two decade old.
Who started the company?
Initially the company was promoted by me and the present director of the company. Before the establishing this company I was running a business in a partnership firm engaged in printing and dying and we use to deal with exporters, during this we thought of establishing our own export house.
How many employees and managers are employed in your company?
We have 23 managers and 155 employees presently working in the company.
What are the recruitment method opted by Ocean Exim?
We generally recruit by advertising in the news papers, placement services and campus interviews.
What kind of training is given to your employees?
Generally we bring trainers from outside for the employees. We also send our employees of respective field to attend various seminars in other cities and also call experts for the interaction with the employees.
On what basis is the performance appraisal depends?
Performance appraisal depends on the factors such as effective communication, timely execution of the order, customer satisfaction and there reports and also productivity.
Do you have a reward system being followed in your company?
At present there is no such reward system, usually it is the increment by cash or a small price distribution ceremony during the festive season.
What is the labor turn-over rate of our firm?
4 to 5 workers leaving per month.
Are you satisfied with such labor turnover rate?
No, we are not at all satisfied with it. The reason for such labor turnover is that they get better opportunity in other companies and one other reason which has come to my notice is that people here are in habit of changing jobs.
Why you want to use non-financial motivators?
From last few months I have seen that the market condition is very bad, the sales are going low and we are mainly exporting to USA where the market has gone totally down. In such crisis we are facing decrease in labor productivity and increase in labor turnover, so in such financial crunch we have to grow to survive in the market and on the other hand, at the same time we have to cut our costs also. So we would prefer non financial motivators rather than financial motivators.
What could be the reason for decrease in labor productivity?
These days employees demand more than what they give. In my working unit I have noticed that employees are in habit of doing only those things what they are told to, they are not using there brains, what we expect from a employee once we appoint him, we don’t get the expected result from him/her. They are not self motivated, they want to earn but they don’t want to work.
Appendix 2
SWOT analysis of Ocean Exim India Pvt. Ltd.
Appendix 3
Survey for the employees
Questionnaire
Don’t write your name or post on the top.
Every information gained will be remain confidential and will not be leaked
Please answer the entire questionnaire.
1. For how many years have you been associated with the firm?
□ 0-1 year
□ 1-5 years
□ 5-10 years
□ More than 10 years
2. How often have you been appreciated for your work?
□ Very often
□ Sometimes
□ Rarely
□ Never
3. Are you satisfied with the remuneration given by your firm?
□ Fully Satisfied
□ Somewhat Satisfied
□ Not Satisfied
□ Highly Unsatisfied
4. How well is your interaction with the management of the firm?
□ Frequent, Informal & Well appreciated
□ Rare, Informal & Well appreciated
□ Frequent, Formal & Not appreciated
□ Rare, Formal & Not appreciated
5. According to you, what is the strongest aspect of your firm?
□ Pleasant Work Culture
□ Excellent interaction with the higher management
□ Appropriate appreciation
□ Good compensation packages
6. If given the responsibility what would be the first thing you would like to change in firm to improve the work culture?
□ More meetings with senior managers
□ Suggestion Box
□ Separate time with management for personal problems.
7. If you had an option to choose from any of the 3 options given below which you would choose.
□ More Holidays
□ Increased Pay
□ More Opportunities
8. Does your company provide further training to the current employees in their respective field?
□ At regular intervals
□ Sometimes
□ Rarely
□ No such opportunity
9. Which do you think is most important facility that is provided to you by the firm?
□ Cafeteria
□ Medical Insurance
□ Schooling for your children
□ Pension scheme
10. Any thing you would like to add in the firm?
□ Water coolers at various places
□ Medical Insurance
□ Replacement of any senior staff
□ New & modern machines
Appendix 4
Organizational Structure of Ocean Exim India Pvt. Ltd.
Appendix 2 (SWOT Analysis: Threat)
Figure 1.3 Survey Findings
Appendix 3: Survey Questionnaire
