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Organizational development - Assignment Example

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The main objective of this study is to use a reward systems intervention to help XYZ improve its performance; to propose appropriate re-structuring of the XYZ organization and to propose reward systems to XYZ that would help retain and motivate its employees…
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Download file to see previous pages The firm that is analyzed in the paper is XYZ Company that deals with textile design. It has 2,000 employees. The company designs and makes clothes for various customers in Europe, Asia and North America. The company supply its products to different countries specifically designed according to preferences and demand of the market. Last year, XYZ ventured into African market with various customers demanding various designs that fits African cultures. In light with this, the company saw the need for the establishment of new outlets in three African countries which have an interest in using XYZ products. The human resource department resolved that the company has to transfer some employees from the U.S offices to the newly established offices in Africa. However, the move to diversify market to the African market was as a result of the downward trend in sales from the already existing markets. When employees were notified about the intentions to be transferred to the new market, over 100 employees resigned their positions as employees of EYZ Company. However, the situation deteriorated with more resignation letters flowing into the human resource office daily. At first, the human resource manager thought that the employees were afraid of being transferred to work in the new market. As some investigations were conducted, it was noticed that the employees left the company because of bad working conditions. Amazingly, those that had left were hired by XYZ’s main competitor whose working conditions were more enticing than those of XYZ. Intentions to open new offices in the new market were temporarily suspended until some organizational development was realized in the existing market. Statement of the problem Since its establishment in 2000, XYZ has been leading in textile design. At first, XYZ operated in the U.S market only. Its marketing strategies and employee relations were perfect, something that led to the establishment of new outlets in the European market. However, since the retirement of its human resource manager in 2008, the company performance has been deteriorating year after year. It has been argued that employee wellness and reward system has been ignored by the new management since 2008. Employees have not been proactive as there before, thus poor performance of the company. It is argued that employees are one of the best capitals an organization can ever have (Jex 245). Therefore, their wellness is vital as it help retain and motivate them. Once employees are motivated, they tend to perform their duties effectively. Due to this fact, XYZ’s profit margins have gone down to the extent of failing to take care of its liabilities including payment of its employees. This is what prompted the management to think of opening up new markets in the African market. The presumption was that there was a decrease in demand and stiff competition of their products in the existing markets. However, it is believed that a company is able to have a competitive advantage in markets with stiff competition only after employing all necessary measures including employee wellness. It is apparent that if XYZ fails to intervene on the matter, it is highly unlikely to remain in the market. In the short term intervention, it would be essential for XYZ to find ways of retaining the current employees by addressing their grievances at hand. This way, it is highly likely that the company will be able to uphold its present performance without going on a downward trend. Nevertheless, it is equally important to employ long-term measures, which would enable the company improve and survive the highly completive market. Objectives of intervention The main objective of this intervention is to use a reward systems intervention to help XYZ improve its performance Specific objectives To propose appropriate re-structuring of the XYZ organization To propose reward systems to XYZ that would help retain and motivate its employees Scope of intervention Since XYZ company ...Download file to see next pagesRead More
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