The Key Features of James Jewel Design Ltd - Case Study Example

James Jewel Design Ltd Name: Institutional Affiliation: Problems Facing James Jewel Design Ltd (Standard and Bespoke Sections) One of the major problems that are facing this firm is poor management of its subsidiaries. Closure of East Yorkshire site is an indication that there are no effective strategies of running the company’s branches. In addition, there are no policies to be followed in case one branch is performing poorly and becoming a burden to the rest of the organization. On the other hand, there lack an effective procedure of absorbing the employees that are inherited from closed branches. This is the reason the twenty employees found it hard to integrate with the rest of the subordinates in their new workplace. The company invests very little money in modernizing its operations. Despite the firm dominance in the market, little money is being channeled towards improving the current technology being used to make various jewelries. As a result, the current machines being used are in dilapidated state and require huge investment in order to replace them. With the current level of competition in the market, every organization is trying its best to ensure that it modernize its operations in order to remain relevant in the market. As a result, in case the business does not take quick action, it is likely to be overtaken by the new investors who are penetrating the market. Poor organization has a major stake on the current state of the business. The firm lacks effective organization structure. This is the reason that brings constant conflicts between the supervisors. This is because there lacks an effective command centre which would act as a unifying factor. Furthermore, there are no effective methods of solving conflicts in the organization. This is the reason why the level of turnover remains high. Every employee wants to work in an organization where their interests are taken into consideration. However, in this organization the results are more important than the people who have been able to sustain the operations of the business. Little is being done to improve the welfare of the organization. For instance, the employees are not allowed to join the workers union. Therefore, they feel alienated from the rest of the subordinates in the region. The working environment is poor and inhumane. For instance, the standard section is dark and unventilated. This makes it hot and unbearable to the employees. This lowers the staff morale and majority of them prefer to look for better working environment elsewhere. In addition, these conditions lower the morale of the employees, an aspect that is directly replicated in their overall performance. There are several risks that are facing the employees. In the example, the Bespoke section can only be accessed through a ladder. This poses a great threat to injuries. In addition, it can be demotivaing especially when an employee is expectant or not feeling well. Moreover, the room is small despite having to accommodate a high number of employees. Furthermore, the building is more than one hundred years and it’s not renovated frequently. This risks the lives of the staff members. In the past decades, the company has grown in terms of employees and production. However, the space and tools of work remains the same. The human resource sector is poorly managed. The training of the staff members takes so long, an aspect that might discourage some of the employees. In addition, promotion and recruitment of the employees is not conducted effectively. For instance, when looking for an employee to fill a top position, the first priority should be given to the employees who have experience with the operations of the business. This should be done before the decision to outsource the employee from outside. On the other hand, the number of employees exceeds the work being done. The condition has been aggravated by the adding more employees from the closed subsidiary. Moreover, some more employees have been recruited into the Standard region in order to provide cover during the high season. Therefore, some employees are idle and they are acting as a burden to the company. There is lack of teamwork among the employees. Each employee works very hard in order to please the supervisor rather than achieving the overall goal set by the organization. Furthermore, there is no coordination between standard and Bespoke departments. This is a source of conflict because each sector is trying to prove the other wrong. This might be affecting the overall performance of the business. In addition, if this was happening, in other subsidiaries, it might have been the major factor that led to the closure of the East Yorkshire branch. The company is facing major quality issues. This is because it is concentrating the quantity of the products produced than their quality. This is the reason why many consignments are being returned. In addition, this explains the reason why many customers are not satisfied with the products with this firm. Customer satisfaction is a major factor that improves the performance of a business in a market. With the current trend, the customers are likely to lose their trust on the company’s product. As a result, they are likely to look for substitutes from the competitors. This will continue to affect the company sales. All employees wish that their effort towards the success of the business be recognized independently. In this company, there are no well outlined procedures to identify and reward the most hardworking employees. Lack of a performance appraisal program makes it hard for the supervisor to know the best candidate to promote. In addition, they cannot be able to know the employee to reward. This aspect leads to job dissatisfaction and low motivation levels. In case it’s not address, more employees are likely to quit and join the competitors. This will leak the secrets of the company to other businesses that deals with similar products. As a result, they are likely to have an upper hand in the market. There are no effective communication styles in the company. The relationship between the op management and the subordinates is very poor. On the other hand, the relationship between supervisors needs to be reviewed and improved. Blame games are frequently and they affect the overall operations of the business. Despite the existence of departmental manager, his presence is not felt because he has done very little to unite all top level managers. For instance, the two supervisors rarely speak unless they are complaining about each other’s section. In addition, there is no good communication between the two departments. Each work independently despite being expected to achieve a common goal. This is the reason the end products fail to meet the needs of the target market. Solutions to Problems Facing James Jewel Design Ltd (Standard and Bespoke Sections) The company should invest heavily on the technology and infrastructure in the business. The firm cannot be able to expand or handle the increasing demand. Currently, young people who form the largest segment of the market have a disposable income which they are willing to spend on high quality goods. However, with the current trends in this business, this target market will look for other products which meet their tastes and preferences. As a result, the company should invest in new machines which can be able to handle a lot of work than the employees. The automation of operations will increase efficiency. In addition, this intervention will reduce wastage and minimize time taken to produce the products. This will have major impact on the overall performance of the organization. On the other hand, the company should try and expand the working space. This is through renovating the new building in order to have more space for the employees. In addition, better ventilation should be installed. This is to make the room to be more airy. Moreover, all risks that are currently facing the employees should be dealt with accordingly (Lewis, 2011). For instance, the ladder should be removed and replaced by well constructed stairs, lifts, or even escalators. The old machines should be removed and replaced by new machines that are safe to use and more efficient. Computers should be installed in the organization in order to make the operations easier and more efficient. This would make it possible for the business to assess the operations and make decisions more easily. Communication is another major problem that is affecting the organization. In order to improve the level of communication in the firm, the business should implement an open office policy. This would be significant in ensuring that the employees are able to get access to the top management without the use of intermediaries. This would make it possible for the subordinates to raise any issues that might be affecting their performance without using the supervisors. This would play a significant role in increasing the level of motivation among the employees. On the other hand, there is a communication breakdown between the supervisors. This is because there is no well laid strategies of how they should be able to communicate and report any issues to the top management. As a result, the organization should outline the communication channel to be used to pass information from the top management to the low-ranked employees. This would reduce the level of friction between the supervisors. Moreover, it would improve the level of coordination between the two sections. Communication between the low ranked employees should also be encouraged. In the meantime, employees are not communicating effectively because they lack an effective platform to do so. This has been spearheading constant rivalry which has been affecting the overall performance of the business in the market. Furthermore, this has been increasing the turnover levels. The organizations should ensure that it holds frequent forums which involve all employees irrespective of their ranks (Kumar & Reinartz, 2012). This would be creating an opportunity for all employees to meet and interact. As a result, the move could erase any fear or ill-feelings between the employees. It would also play a significant role in creating a platform where all employees would discuss any issue that is affecting them. Lastly, there should be organization’s parties or even retreats. These should enable the employees to come together and share a light moment when they are not under any pressure to beat any deadline or limits. This would reduce the conflict levels and provide all staff members with an opportunity to share ideas on how to spearhead growth and development in the organization. Proper management of the subsidiaries should be taken into consideration. In the meantime, more subsidiaries are likely to close down because there is no sharing of information or even resources between the branches. In order to avoid any other branch from closing down, there should be a reshuffle in the top management. The organization should retain only the performing managers. Others should be demoted or even fired. This would create a sense of seriousness among the rest of the managers. On the other hand, the organization should recruit qualified managers who have been proven and are goal oriented. These are people who know the importance of a well motivated workforce. This would change the current perception that the only important thing to the organization is profits. The managers should be conversant with different way of improving the relationship between the top managers and the rest of the employees (Homburg, Workman, & Jensen, 2000). At the moment, employees are there to earn salary and provide the organization with labor. However, this is not the case. Their satisfaction is very significant towards the overall success of the business. Moreover, the businesses are geared towards a common objective. Therefore, there should be a strategy to rescue poorly performing branches. This is through the use of money from another branch in order to restore the operations of another (Laird, Naquin, & Holton, 2003). Closing down is not the best solution because the move increases the risks and uncertainties associated with concentrating on few or one business. Effective procedures of absorbing employees that are inherited from other branches should be outlined. This is to reduce frictions with other employees in the organization. For instance, the employees should be given low ranked jobs and be given an opportunity to prove that their hardworking than the existing employees. This would be important in creating confidence of other employees towards them. Therefore, when they are promoted, everyone would be contented with the decision. Human resource section should be managed properly in order to motivate the employees. The first intervention should be to develop a rewarding system for the employees. An effective performance appraisal should be drafted in order to ensure that there is no any form of biasness when selecting the staff members to be rewarded. The best performing employees should be rewarded effectively in order to feel appreciated and valued in the organization (Zheng, Yang, & McLean, 2010). In addition, they should be given an opportunity to come up with innovative ideas which would impact the business positively. In the meantime, no one is agitating for better working conditions or even better remuneration. Therefore, the employees should be allowed to form a union which would represent them during the top level meetings. This would ensure that their issues are being incorporated when decisions are being made. Low salaries are another major factor that has contributed immensely in lowering the motivational level of the employees. It has also led to high turnover rates. Therefore, all salaries should be reviewed and improved in order to match the work being done by the employees. In addition, job groups should be described. This is to ensure that employees work harder in order to be promoted and get more benefits. Training is an important component towards the success of any organization. With the increasing levels of globalization resulting from liberalization of markets, efficient flow of information and integration of markets, the level of competition in the market has increased tremendously. This results from the entry of multinational firms in the local markets. These firms have a huge financial base to segment the market, position their products strategically in the market, and attract customer loyalty towards their products. Therefore, in order for James Jewel Design Ltd to remain competitive, it must keep on reviewing its training curriculum (Chen & Huang, 2007). This is to incorporate the changes in the market. Furthermore, the training should capture and incorporate the changing tastes and preferences of the target market. On the other hand, the training period should be minimized. It is very discouraging for an employee to be put under training for a period of two months. This is because some of these employees are there on temporary bases. Therefore, they feel that they are subjected to training which will not help them in the future. In addition, those who are training end up joining the competitors. They therefore, leak the information and strategies used by the company to retain its competitive advantage in the market (Schabracq, 2007). As a result, those who have undergone the training program should be given special benefits. This would make them remain loyal to the company. In addition, the move would encourage the rest of the employees to go through the training in order to gain more benefits. Good customer relationship management strategies should be drafted in order to improve the performance of the organization in the market. Customers form an integral part for any business. However, in James Jewel Design Ltd, little attention is given to understand the interests of the clients. This has been affecting the sales of the businesses because many consignments are being returned because they don’t meet the expectations of the market. Therefore, in order to improve the current relationship, an independent department should be formed. This sector should be mandated with conducting an effective marketing research in order to note any changes in the consumption behavior of the market. In addition, it should be mandated with the role of checking the issues being raised by the customers regarding the quality of the products. They should therefore report to the respective sector an in-depth analysis conducted in order to identify the reasons behind the quality issues. In case they emanate from unqualified employees, the necessary changes should be implemented. For instance, such employees should be put under training or close supervision. This would ensure that quality aspects are given the first priority (Infante, Rancer, & Womack, 2003). On the other hand, the business should develop an effective communication platform whereby the customers can contact the organization directly and give their feedbacks, reviews, or even areas that they would like to see some changes. This would make them feel as an integral part of the company. The customers would also raise some ideas on how to improve the operations of the business. Implementation of these changes would play an important role in increasing the market share of the business (Baran, Galka, & Strunk, 2008). The current organizational culture should be changed. In the meantime, there is no innovation or even teamwork culture. Instead, there is a culture of disrespecting the supervisors and top management and instead viewing them as the source of failure for the organization. However, in order for the organization to progress, the spirit of teamwork should be encouraged. All employees should be encouraged to work as a team rather than working hard in order to receive individual recognition. Furthermore, the rewarding system should be geared towards recognizing team’s effort rather than individual work. Moreover, both departments should be treated as a single unit (Witte & Muijen, 2000). The privileges given to those working on one sector should be spread to those working on the other. Nevertheless, those handling tough work should be given more privileges as a way of recognizing their effort towards the success of the business. A neutral department of handling with conflicts arising in the workplace should be set. The employees should be encouraged to report any issue that is affecting their relationship with each other to this department. The section should also ensure that action is taken towards solving these conflicts before they get out of hand. Innovation is another aspect that needs to be emphasized. Employees are the ones that interact with the customers. As a result, they are a critical source of information to the top management. Therefore, they should be given the freedom to come up with innovative ideas which would spearhead growth and development in the organization. A special fund to support any innovative idea that has been brought up by the employee should be established. This would act as a motivating factor as it would make them feel as a special unit in the organization (Reilly, Sirgy, & Gorman, 2012). Supervisors and top level managers should be willing to support these ideas and guide the employees in developing an idea. These innovations are very crucial in ensuring that the organization remains competitive and it adjusts towards the tastes and preferences of the target market. When changing culture, politics should be toned down in order to provide a serene environment for the employees (Schein, 2010). Currently, politics and lack of trust especially among the supervisors is having a major role in stalling very many operations in the organization. In addition, the top management is not able to control the workforce because of their special interests. This should be regulated through drafting various policies that would act as checks and balances. The organization should draft a policy outlining the roles of all stakeholders in the organization. Lack of clear job description is one of the aspects that keep on bringing conflicts. For instance, the supervisors monitoring the two departments should clearly know their roles and limits. In addition, employees working in one department should not yearn to move to another sector in the organization as along it’s in the same position. They should be made to admire their place of work and the job that they have been assigned. Delegation of authority is another area that needs to be addressed (Pershing, 2006). Supervisors cannot do all the work. Sometimes especially during high season, they are forced to look for people to help with their work. However, procedures to delegate some work should be outlines. This is to ensure that there are no hidden interests when giving out this work. Furthermore, when a specific position need to be filled the employees should be given the first priority. Currently, the reputation of the company has been tarnished due to various quality issues that are being reported by the customers. On the other hand, there are negative attitude about the business among the employees. Customer no longer trust the products manufactured by this firm. In addition, they want to be associated with a company that participates in improving the welfare of the society (Carton & Hofer, 2006). As a result, in order for the business to improve its reputation in the market, it should set a part of its profit and direct it towards the society. This can be achieved through sponsoring various educational programs, participating in environmental protection projects, or even support various sporting activities. This will play a significant role in improving the trust of the people towards the company. On the other hand, the move will give the employees to interact with the customers and understand various factors that affect the consumption behaviors. On the other hand, it would reduce boredom through changing the environment. It will also change the employees’ attitude towards the company (Laird, Naquin, & Holton, 2003). Relevant Implications If this company was situated in my country, it could have lost its license because of its poor working condition. The government has been in the recent years put up effective measures to ensure that the interests of the employees are taken into consideration. For instance, the government through its labor officer inspects the working premises in order to ensure that they are in hospitable conditions. They ensure that employees feel comfortable. In addition, the always ensure that health of the employees is always protected. In this case, the building is not safe for the employees. In addition, there are several risks that face the employees. Therefore, they can cause injuries and in extreme conditions, they can lead to death. As a result, the officers would give the organization a specific ultimatum to make the necessary changes or risk losing its operating license. This is an indication that if the company was located in our country, the management should have already improved the working environment in order to comply with the set rules and regulations. All employees in our country have the right to join a workers union. They are given the freedom to select the best union which will agitate for better working environment and better remunerations. In this organization, the employees are not heard and their attempt to request for better conditions is met with threats to be fired or even demoted. In our country, ever employee has a right to be heard. As a result, the employees could have joined one of the labor union which would have already visited the company in order to verify the claims by the subordinates that they are being worked under poor conditions. With the current conditions, the labor union could have taken a legal action towards the company. Therefore, changes should have been implemented. This is an indication that the government in this country have done very little to protect its employees from exploitation from investors who are only interested in making profits. After heavy exploitation of employees by their employers in 1950s, the government decided to draft various employment laws that are meant to protect the employees from any form of exploitation. The laws went ahead to force the employer to offer the subordinates with several benefits such as insurance and health benefits. These are meant to ensure that employees are well protected from injury or accidents. Therefore, in case the business was located in our country, it would be forced to forward the necessary insurance fee to cover all employees. In addition, it should be mandated with ensuring that all employees are protected from any form of injury. Failure to follow these rules would make the company liable for charges in a court of law. The owners would therefore, be held responsible in case of any form of injury among the employees. Working hours are regulated in our country. It is illegal to overwork the employees without giving them bonuses which have been agreed upon by both parties. In addition, the law ensures that employees are protected from injury through making it mandatory for the businesses to provide the subordinates with a protective gear in case they are working with tools or machines that can cause any form of injury. Therefore, in case the company was located in our country, it should have protected its employees who are currently working with bare hands. In case the company was located in our country, I would offer advice on differentiation strategy. In the meantime, the company does not differentiate its products. Therefore, it’s hard for the customer to differentiate the company’s products with those of the competitor. As a result, some malicious investors can take advantage of this gap to sell their products through the company’s name. The differentiation strategy would entail the creation of a unique brand name which will be noticed easily. However, the company should popularize its products in order to make it easy for the employees to identify the brand with ease. A strong brand would make it easier for the company to expand its market. In addition, it would be easier to penetrate the global market. This is because through advertising, the customers will be eager to test the products from the company. At the moment, the majority of the jewelry in the market is imported from other countries. Therefore, I would advise the company to accumulate huge amounts of money through taking advantage of the current demand. The money would later be used as a barrier of entry to any investor who would be interested in investing in the sector. Furthermore, it would be used to advertise the company’s products, an aspect that would play a significant role in attracting the loyalty of the target market towards the products. This would make it hard for the competitor to penetrate this market. The company can gain competitive advantage through knowing the competitors. This can be achieved through knowing how they produce their products, their target market, and how the customers think about their products. An intensive market research should be conducted regularly to understand new changes in the market and different aspects that influence the purchasing behavior of the target market. This would enable the company to produce the products that meet the requirements of the customers. In addition, it would prevent the current quality crisis that is facing the business (Cameron & Quinn, 2006). As a result, the company would be able to retain its customers and enjoy high numbers of referrals. This would be significant in enabling it to retain its competitive edge in the market. I would offer the company with information on how to diversify its operations. Many of the businesses have failed to retain their competitive advantage because of concentrating on a single line of product. As a result, they are easily wiped out once multinational companies enter the market. In this case, I would encourage the business to diversify its source of revenue. In addition, it should invest in several markets across the country and neighboring countries. This is to prevent the risks and uncertainties associated with concentrating on a single market. As a result, it would be easier for the company to dominate over its competitors. In addition, diversification strategy would equip the employees with the necessary skills to deal with challenges that might face the company in the future. Lesson Learnt One of the major lessons learnt is that employees are the most important part of any organization. Therefore, any organization that is aiming at good performance must first ensure that they are satisfied. This is through investing in various motivating aspects such as rewards. Once they are satisfied they change their attitude towards the organization and they are willing to offer their labor and ensure that the business remains the top in the market. On the other hand, I have learnt that employees are the major source of ideas for the organization. Due to the fact that they interact with the customers daily, they are able to understand their interests and inform the top management on various changes that are required in order for the business to retain its competitive edge in the market. I have learnt that teamwork is very significant in enabling the business to deal with external threats. Due to lack of the spirit of teamwork in this organization, there were frequent conflicts that affected the work rate of the employees. In addition, the wrangles made it hard for the business to deal with quality issues. Therefore, it’s clear that unity among the employees irrespective of their ranks is significant in ensuring that the products being offered to the market meet the requirements by the target market. I have learnt that working environment is very important in creating a positive attitude among the employees. Therefore, the employer has a mandate of neutralizing all risks that might affect the employees. In addition, various benefits are important in motivating the subordinates. In addition, they make the employees feel appreciated as an integral part of the organization. Supervision and management of the employees are other aspects that play a significant role in creating a good working environment. Furthermore, the relationship between the top level managers, supervisors, and low-ranked employees is important in ensuring that conflicts that stall the operations of the business are minimized. After completing this module, I have learnt that poor organization is very important in the overall success of the organization. In addition, it ensures that there are no power struggles between different levels of management. Moreover, it prevents the top management from using their powers against those who are not supporting their agendas. While there are effective procedures in the organization, it becomes easy to delegate powers and hold people accountable for their actions. This minimizes blame game and promotes the level of transparency. In addition, it improves the relationship between the employees and their seniors. References Baran, R. J., Galka, R. J., & Strunk, D. P. (2008). Principles of customer relationship management. Mason, OH: Thomson/South-Western. Cameron, K. S., & Quinn, R. E. (2006). Diagnosing and changing organizational culture: Based on the competing values framework. San Francisco, CA: Jossey-Bass. Carton, R. B., & Hofer, C. W. (2006). 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