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Summarise the employee commitment issues in the Optical Fibres Case and develop proposals to deal with the three problems emerging in the case.

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Introduction

Human Resource Management COURSEWORK 1 - Optical Fibres Case Assignment Summarise the employee commitment issues in the Optical Fibres Case and develop proposals to deal with the three problems emerging in the case. Overview of Employee Commitment Issues Employee commitment issues are those related to the psychological contract between the organisation and the employees. The psychological contract is 'an unwritten agreement between individuals and the organisation of which they are members.' (Schein, 1970) The overriding issue is the different perceptions the employer and employee have of the same events, actions or behaviour. There is an evident dichotomy between the perception Optical Fibres (OF) wishes its employees to have, and tries to generate, as part of its side of the psychological contract and the reality of its employees perceptions, I will illustrate this later. This is in part due to a failure of OF to update in a meaningful way its HRM policies and practices to deal with the evolved labour market, its business and the expectations of employees. What they did at the outset & what they are not doing now? The Optical Fibre business opened in North Wales in the late 1970's, the site developed was a Greenfield site so the joint venture injected much needed income and employment into the area. ...read more.

Middle

Additionally low level workers would benefit from the return of socialisation, camaraderie and group/team values. The issue of boredom for monotonous tasks is difficult to deal with; though introduction of the competitive element, structured training targets and 'soft benefits' may help. Soft benefits could replace the 'annual bonus,' with quality of work-life improvement schemes. The flat bonus could be replaced with; a workplace gym, cr�che, bar, restaurant/cafe etc, in lieu of annual bonus (�1,000 bonus * 350 = �350,000); though this on its own does not address the job security element of employee commitment. Temporary contracts, certainly for computer workers, normally require pay premiums. The trade-off on bringing these temporary contract employees onto permanent contracts would be their representation in the 'consultative system.' New employees are attracted through 'upper-quartile' salaries, the salary then starts to reduce relative to market rates as a mandatory bonus is paid and the Advisory Board fails to adjust salaries appropriately. An independent remuneration committee would ensure that the 50 'world standard' employees are retained, that their pay rises are not based solely on length of service and they do not become disillusioned. The company could reward these 'global employment market' workers with profit-related pay to encourage over-performance. ...read more.

Conclusion

Proposal Quality circles, self-managing teams, become value creators to retain staff. US Parent put pressure on them for Total Quality management/quality circles, they should implement these. The commitment scheme they think they are creating does not tally with the reality so they need to understand the reality. There are all manner of HR/OD strategy & tools to deploy at this stage; including those to improve communication & performance through Kaizen (employees put ideas forward). Conclusion The focus of the proposals is to generate greater employee commitment, by dealing with the three issues currently experienced with the psychological contract between OF and OF employees. The employee commitment issues in the Optical Fibres case that have been identified and addressed through my proposals include: * Job security & progressive, adaptive company approach to employees. * Quality of the supervisory relationship and company's leadership * Favourable developmental opportunities & training * Participation in goal setting & individual empowerment * Sufficiency of pay, benefits, rewards & promotional opportunities * Clearly stated guidelines defining appropriate work behaviour and job demands * Receipt of performance feedback & justice in performance-appraisal decisions * Supportive communications with immediate supervisors and upper management * Job quality - 'If you want people to do a good job, give them a good job to do.' * Evaluative and objective measures of performance. ...read more.

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