When the colleagues work very hard and effectively the receive bonuses and their wages can be raised. Ricer Sounds like to share their profits to all their colleagues so that everyone at every level so that they can be benefited.
Richer Sounds also believes that all their colleagues should be secured in all ways and In case if there is a downturn in the business then the colleagues will be relocated to another department or to another store.
Every colleague is also promoted internally so that the company does not need to recruit new colleagues. Richer Sounds only recruit colleagues if needed and only those who have specialist skills in an area such as in IT, Finance or even in Marketing.
Information on the owner – Julian Richer
Julian Richer is the sole sharholder, which means that there are no other external shareholders. Julian Richer still has all the interest in the business just as much as he had when he started this business. As Julian Richer is the sole shareholder the company can pay better salary to the colleagues so that all colleagues are benefited and also keep the companies product prices lower and competitive rather than most of the profits going to the external shareholders.
How does Richer Sounds work with their suppliers?
This is the key shareholder for the purchasing department because they supply all the goods needed by the stores.
Without good relationship between Richer Sounds and the suppliers the company would not be where it is today therefore they always try to build up their relationship and try avoiding all the misunderstandings.
Richer Sounds have good background record in their payment to all their suppliers’ so that there would not be any problems in future. The company is unlisted public company because their accounts would be prepared to meet the highest standards.
The company never makes their suppliers wait for their payment exceeding their time limit because then suppliers would not like to work with the company and if that kept happening then the company would not have a decent supplier which would offer them good products at better price rates for which Richer Sounds can add profits on to it and also keep the product cheaper than its competitors
Information on the third party Distribution Company
The third party distribution company is called Two-Way. This company operates the Richer Sounds warehouse where all the stock is kept. The Two-Way drivers distribute all the goods from the warehouse to all the stores. The main reason for Richer Sounds to have another organisation to operate their warehouse is because it gives a benefit to Richer Sounds and also gives benefit to the Two-Way company. The benefits are:
- Richer Sounds – the benefit for Richer Sounds is because if company would operate the warehouse themselves it would be very expensive for them to run the warehouse
- Two-Way – The benefits for Two-Way are that they can depend on Richer Sounds business in the future
Information on their Financier
Richer Sounds financier is the bank. They have a bank overdraft and also have bank loans. Richer Sounds have a good relationship with their bank manager because if they have any problems they can directly consult with him easily. It is also helpful if the bank manager would understand the business problems that may occur and how. The bank would also help the company for any financial help if Richer Sounds has a good record with the bank.
Every month a copy of financial accounts such as:
- Profit and loss accounts
- Balance sheets
- Cashflow forecast
Are sent to the bank manager. Richer Sounds also thinks that bank is also one of their most important stakeholders because financially it is helpful for the business to plan for future investments.
Examples of some of the company’s current projects are:
- They set-up a free touch-screen information points for the homeless
- Funded a production of pocket size booklet called Inreach
- They funded a help-line for people with spinal injuries
- They also funded a storytelling tour
Because Richer Sounds use the name Persula for their charitable foundation the community will not be able to realise that they are stakeholders of the company and this is good in a way because the company does not wont people to think their charitable work is just another way of attracting more customers. Because Richer Sounds is making huge profits at this stage they are able to continue with their charitable foundation but if anytime they stop making profits then charitable foundation would not be possible.
External stakeholders
How does Richer Sounds work with the community?
Every year Richer Sounds give there 5% of their profits to a charitable foundation called Persula which is set-up by the company. The company set this charitable foundation up in 1994.
In the current their project support charities concerned with animal welfare, the blind, cancer, deaf people, homelessness, criminal injustice, kidnapping, disabled and many more. Richer Sounds also like their colleagues to participate with the charitable foundation and suggest causes and initiatives.
In this part of the coursework I will be describing the roles of three employees who have different roles and responsibilities and then explain the contract of employment other three people I describe. It will also include the terms and conditions of employment and arrangements.
The three colleagues I have chosen to describe their roles are:
- Lee Nelson – field sales director
- Gemma Baker – personal assistant to managing director
- Andrea Day
Lee Nelson – field sales director
Lee Nelson has been working richer Sounds for the past 15 years and started when he was 16 years old. He started as a full-time stockroom controller in the London bridge store. He had jobs like helping with deliveries, general work around he store and also keep the stock room clean and tidy. But today the company also has stock room controllers who help out in all the busiest hours like on the delivery days and on Saturdays
After a year later he went to the central support for help on account department with filling and general duties. Then after six months he became a sales assistant in a store near London Bridge. After those six months he got promoted to deputy manager and most of the responsibilities were in his hands. A year later he became a manger as the previous manager went for a bigger position.
In the 2001 lee became the field sales director who visits every store in the U.K for any problems or concerns. He tries to take care of all the problems he faces by himself unless if the job was not his type. The entire major problem he encounters he reports them to Jez Avens the deputy-managing director who then takes care of the problems.
Gemma Baker
This is Gemma first ever job and she has stayed with the company for 5 years. She started this job just after she finished her college for a colleague support assistant. Her role was to provide staff cover and control store rotas on daily basis. Her job was also to obtain colleague references, sending out welcome packs and application forms for new colleague
In mid October 2000 she was quite lucky and got promoted to personal assistant to David Robinson the group MD. Now she has to work with new interesting people and variable work, which seems interesting to her. She prepares all David’s arrangements, meetings and his diary. Whenever David is away she is responsible of taking care of all the phone calls and passing the import call to him.
She seems to like the company and wants to stay as long as she can. She has been feeling proud for all her achievements at this company and everything that this company gave her.
Andrea Day
Andrea started her job at richer sounds as a part time worker because of her studies but when she had a year off from her university she was offered full time work at richer sounds at their Prestwich store. Her role was to provide customer service as well as advice in selling home cinema and hi-fi equipments
She likes to solve as many problems as she can on her own. She tries to help out with the customer’s decisions with their type of specifications they want. Because of good customer services she receives bonuses on her pay, which makes her wages higher than similar compared jobs.
Soon she has to go back to her university but she also want to continue with richer sounds because of everything that the company has given her such as more skills in many things like customer service, communication, and administrations and plus sales which gained her knowledge of wide range of products
Contract of employment
Every colleagues working in richer sounds are issued with a statement of their terms of employment when the company has employed them. This statement is similar to a contract of employment. Every colleague is made to understand fully the terms of employment and all the rights and responsibilities. This is also known by then in their welcome pack.
The following is an example of a contract of employment for a sales assistant
Employer And Employee Rights And Responsibilities
All employers working at Richer Sounds have certain responsibilities that they need to be aware off such as: keeping their employees happy and secured at the place of work.
Employers also have their rights, which are same stated in their contract and also their implied rights.
The rights of employers stated in contract of employment
When an employer sign’s a contract at Richer Sound’s there will be certain rights that the employer would agree to such as:
- Work as many hours stated on the contract
- Always turn up for work unless if you are sick (if you as an employer is sick you must inform your supervisor or any appropriate person)
- Do the work as stated
- Also comply with any other conditions stated in the contract.
Additional rights of an employer (Implied Rights)
Implied rights mean that employees should work in ways that will help the employer to meet their business objectives.
Implied rights of richer sounds
Employees must:
- Be honest
- Employees not give away confidential information to anyone
- Work in ways so the business could achieve its objectives
- Behave responsibly towards other people at work
- Take care of all employers properties including the equipments and furniture
The responsibilities of employers over employees in richer sounds are:
- To give all their colleagues a minimum of one – hour lunch break
- Give his/her colleagues sick pays
- Give the colleagues a holiday pay for maximum of twenty days and once a year
- To see whether employees are happy with their work and environment they work in
- Finally pay all the colleagues at the end of each month.
Employee Rights
All employees have certain rights within Richer Sounds. For example: to be paid at the same rate specified in the contact f employment.
All employees have rights to be:
- Paid accordance to the contract
- Provided a safe environment to work
- Trained
- Allowed to access confidential record
Employee Rights of Payment
- Employees working at Richer Sounds have their rights to ask for national minimum wages. But infract they never give their employees wages under the national minimum rate.
- Payment stated within the contract
- Sick pay if they have worked more than a month at Richer Sounds
- Holiday pay for at least three week a year
Employee Rights for safe working environment
Richer Sounds always ask their employees about the environment whether they if the place where they work is safe for them or not. If they aren’t then the company will move that employee to a specific protected place where they can work more freely. Employees have their rights to ask for a better environment themselves if they are safe where they work.
Employee Rights on training
Richer Sounds have given all their employees rights to ask their employers for any type of training they require such as:
- Every employees have rights to receive health and safety training
- Training on the kind of job roles employees have
Employee Rights on Confidential records
Every employee in Richer Sounds can whenever ask their employers to show their own personal records whether in a file or in the computer. Each employee can see the good points and bad points written about them by the company.
However there are some files that employees are not aloud to see such as police records or the tax records
Resolving Disagreements at Richer Sounds
Richer Sounds – Experiences of Disagreements
There are many reasons for employees and employers to cause disagreements but in Richer Sounds they have never met major disagreements between employers and colleagues because of some reasons, which are:
- Richer Sounds keep up good communication with all colleagues
- All colleagues are free to talk about problems and worries to their employers, managers, directors or even the colleague support or colleague representatives.
- The colleague representative concerns the problem of the colleague to the company and then the company takes actions as needed
- Richer Sounds work hard to main the good relationship between all colleagues and employers
How Richer Sounds tries to enforce the rights and responsibilities
Richer Sounds tries to enforce the rights and responsibilities in many various ways
- Through company policies and procedures on equal opportunities
- Company policies on Health and safety
- Through their grievance procedure – this procedure helps colleagues to take any action if they feel that they have been treated unfairly
Richer Sounds Grievance Procedure
If any complaint or a problem for any colleague at richer Sounds relates with his/hers employment then they can use the following procedures:
Firstly they can speak to their head of department/manager and tell everything that concerns them about employment
Secondly – if they still don’t fell satisfactory then now they should seek an advice from a director of the company or the colleague representative
Working relationship at Richer Sounds
Richer Sounds is very keen on promoting good relationship between colleagues and employers because if the colleague is upset due to bad relationship then he/she would not be able to give excellent customer service to the customers which is very essential for the company
How Richer Sounds promote good working relationship
Richer Sounds ties to promote good working relationship between all colleagues and employers in many different ways:
- By offering wide range of benefits to their colleagues which includes holiday homes, social events as well as business – related benefits
- By offering their colleagues an interesting and challenging type of work and also allowing them to join in with other projects such as the Charitable Foundation
- Also by encouraging all colleagues to say the problems they have at many different times such as during question time session, during store visits, when talking to the manager and through annual colleague attitude survey
- Taking immediate actions on colleague problems
- By fulfilling their legal responsibilities which include:
- Never breaking the contract of employment
- Providing a safer working environment for colleagues
- Giving all colleagues their wish of training
