Burt and Flint Engineering Limited - Importance of Effective Management of Change - Report Example

BURT AND FLINT ENGINEERING LIMITED Name Institution Instructor Date Contents Contents 1 Executive Summary 2 Introduction 3 Steps to reduce staff turnover 3 Importance effective management of change 5 Factors to consider in pricing of product 7 Pricing methods to consider 9 References 11 Executive Summary This report review the performance of the Flint and Burt Engineering Limited based on the findings of a previous consultancy activities. It addresses the steps that are necessary for the company to take in order to realise a reduction in its current high level of staff turnover. It also looks at the importance of effective management of the change process of the company and the challenges involved. Finally, it discusses the factors that should be considered by the company when pricing its products as well as the appropriate pricing methods for the company. Introduction In order for the management team at the Flint and Burt Engineering Limited to understand the steps that are necessary to help in reducing its level of staff turnover, it is important to understand also the reasons leading to turnover. The current high staff turnover in this particular company is because of several reasons. These include the weakness of the company as art of the findings by the consultant. The poor relationship that is currently in existence between the management and the workers at the Flint and Burt Engineering Limited could be one of the reasons contributing to that. There is also the lack of appropriate and effective training for the workers involved in various departments. However, the Flint and Burt Engineering Limited could consider various steps in reducing its current level of staff turnover. These steps are most preferred because they play a very significant role in the significant reduction of the turnover level at a very affordable cost. The first step here is to develop workers and other members of staff. This is because it has been found that organizations and companies that are concerned with the development of their staff and workers enjoy higher satisfaction from their workers and employees. This initiative will definitely lead to a lower level of turnover (Hefley and Murphy, 2008). Steps to reduce staff turnover When a better development plan with various growth opportunities is in place at the Flint and Burt Engineering Limited, the employees will have few reasons to look for opportunities elsewhere. The other step is the recognition of good and commendable performance as displayed by the employees. This plays a very important role in improving the morale of workers. It could involve appreciation through both tangible and intangible rewards. In this case, it is upon the management at the Flint and Burt Engineering Limited to ensure that the employees are sincerely appreciated in a continuous basis (Chang, 2010). The other important step is the building of trust between the management and the employees in this particular organisation. This allows the leaders and the management team at the Flint and Burt Engineering Limited to show the willingness towards supporting their employees. This play a significant role with regard to the trust that is demonstrated by the employees towards the management as well as their leaders. It also leads to the creation of a better working environment that in turn leads to a lower level of staff turnover (Dhillon, 2002). The other step for the management of Flint and Burt Engineering Limited to implement is the reduction of boredom amongst its staff. This is because underutilization of employees has a tendency of bringing about boredom and restlessness. This is likely to cause some of the employees to engage in mischief. Therefore, the management at the Flint and Burt Engineering Limited should come up with responsibilities and duties that keeps such employees actively involved in work every day and tis reduces the level of staff turnover (Nicholas and Nicholas, 2004). The other step that is important toward the reduction of the current high level of staff turnover at the Flint and Burt Engineering Limited is placing emphasis on more communication between the staff and the management. This is because communication is important in bringing out any complaints that might lead to staff turnover. When communication between the management and the employees becomes consistent and ubiquitous, then any arising complaint is dealt with accordingly and in good time. This kind of initiative plays a major role in lowering the level of employee turnover in this particular company (Aucoin, 2002). Another step is that is important for the Flint and Burt Engineering Limited to observe in lowering its current level of staff turnover is that which involves the cross training of employees. Training employees on various different roles and jobs makes them to have a higher value of recognition and so there is a lower tendency for them to leave the organisation. This is because the employees are motivated with their ability to operate in additional skills, which strengthens the functionality of the company (Chang, 2010). The other stet that the company should carefully consider is that of the level of workload that is given to the staff. This should not be beyond the extent that they can comfortably handle and this should be proportional to the returns they obtain. If the issue of workload is not proper, the members of staff can often leave the organisation in such for greener pastures (Aucoin, 2002). Finally, it is important for the Flint and Burt Engineering Limited to carry out review sessions on a regular basis. This exercise attaches the employees closely to the management team, which allows then to feel more involved in the affairs of the company and helps in reducing the current high level of staff turnover. Importance effective management of change Several challenges and issues come about with the change in management for most businesses. It is thus important for the Burt and Flint Engineering carry out this process in an effective manner. Despite the challenge that may be involved in changing the current management for the Burt and Flint Engineering, it has a long-term benefit. It is important for the company to manage the process of change in an effective manner because the process calls for a structured approach in transitioning both individual and teams in the company. The change management process at the Burt and Flint Engineering aims at assisting the management team as well as the employees to understand and embrace the new work environment. This plays a very significant role in enhancing the productivity of the business activities for the Burt and Flint Engineering (Chang, 2010). It is also important for this process of change to be managed effectively owing to the fact that the process directly affects the processes as well as the people in this particular organisation. The impacts could ether be positive or negative. The positive effects of the effective management of the change process is expected to be in a better position to deal with some of the concerns raised by the previous consultants at the Burt and Flint Engineering. These concerns include the small size of the premises, lack of proper long-term planning, high staff turnover and poor customer service among several others. It is thus important for process of change at the Burt and Flint Engineering to be tactical and strategic for it to effective addresses the current problems and challenges facing the business. An effective management of the change process at the Burt and Flint Engineering will also play a very significant role in minimizing the effects and impacts of the process itself. It is thus important for the company to ensure that there are appropriate techniques are in place to allow them to obtain positive results after the whole process of change. It is also important for the company to engage in an effective process of managing change that are customized to suite the circumstances that are surrounding the company currently (Nicholas and Nicholas, 2004). An effective management of the change process at the Burt and Flint Engineering is a very significant initiative as it is expected to go a long way in achieving changes at both collective and personal levels. The process of managing change involves considerable planning and a sensitive way of implementing the plans. It is also important for this process to consider the involvement and consultations with all the relevant stakeholders as well as the people who are likely to be affected by the introduced changes. The Burt and Flint Engineering must ensure that the intended changes are measurable, achievable and realistic. These are very important aspects especially when it comes to the management of change at personal levels. Factors to consider in pricing of product Consultants having identified that the Burt and Flint Engineering lack a clear strategy when it comes to pricing, it is important for it to consider several various factors when doing pricing for its products. Price set by competitors It is important for the Burt and Flint Engineering to understand the prices set by its competitors in the market so that they can appropriately position their own price to compete effectively. If is important to note that there are other factors that may influence the price a product or service, but it is also necessary to aware of what the competitors have to offer in terms of pricing. This will allow the Burt and Flint Engineering to make informed decisions on whether they want to reward their customers by offering high quality at a slightly lower price or not. This is important because the customers in the market will be able to evaluate if they really have a reason to choose the products and services from the Burt and Flint Engineering or its competitors (Dhillon, 2002). Multiple options This is one of the important factors the Burt and Flint Engineering need to consider. This is because considering multiple options as a pricing strategy will allow the company to obtain revenues in a variety of ways. This kind of pricing strategy will also make it possible for the Burt and Flint Engineering incorporate several features in their products to attract additional charges as part of the price (Aucoin, 2002). Understanding the costs involved In setting prices for its product, the Burt and Flint Engineering will have to understand well the cost that they have spent in the production of such a product. This allows them to stay away from setting prices for products and services that are likely to bring losses to the company. This also goes a long way in dealing with the concerns raised earlier by the previous consultants regarding the performance and the current state of the business (Nicholas and Steyn, 2008). Understanding the values of the customers It is also useful for the Burt and Flint Engineering what their customers value and the manner in which that is likely to affects their pricing ability before they can settle on a given price for a particular product. This is because customers always have values attached to actual measurable as well as intangible factors associated with various products and services (Nicholas and Nicholas, 2004). Develop a pricing Methodology Finally, it is important to the Burt and Flint Engineering to come up with a definite methodology in pricing. This will go a long way in creating possibilities for additional customer value as well as increasing the willingness of the customers to pay for the prices set by the company despite increased competition. Pricing methods to consider The Burt and Flint Engineering should incorporate the above factors influencing pricing strategy in the pricing methods that they decide to use. The most appropriate pricing methods for this particular business include: Pricing based on market In this case, pricing should be done based on that of the competitors in the market for such a product. When the company subtract it intended profit from the market-based price, they can be able to establish the cost of the product. Under this pricing method, the production of the Burt and Flint Engineering should be tightened for it to comply with the targeted cost (Nicholas and Steyn, 2008). Marginal prising When it comes to the marginal prising method, it is important for the company to ensure that the price of its products includes all the variable costs such as the manufacturing as well as the procurement costs (Hefley and Murphy, 2008). The profit margin that remains considers adequate shares of the fixed cost for the company. The company is in a position to make profit in case the overall profit margin for the products is more than the fixed costs. Full cost pricing Typically, this prising method is based on costs. It should begin from the premises that the price of a given product must consider the desired proportion of fixed costs as well as the variable costs. When taxes and desired profit is included, the final price for the product is established (Dhillon, 2002). References Aucoin, B. M. (2002). From engineer to manager: mastering the transition. Boston, Mass. [u.a.], Artech House. Chang, C. M. (2010). Service systems management and engineering: creating strategic differentiation and operational excellence. Hoboken, N.J., John Wiley & Sons. Dhillon, B. S. (2002). Engineering and technology management tools and applications. Boston, Mass. [u.a.], Artech House. Hefley, W. E., & Murphy, W. (2008). Service science, management and engineering education for the 21st century. New York, Springer. Nicholas, J. M., & Nicholas, J. M. (2004). Project management for business and engineering: principles and practice. Oxford, Butterworth-Heinemann. Nicholas, J. M., & Steyn, H. (2008). Project management for business, engineering, and technology: principles and practice. Amsterdam, Elsevier Butterworth Heinemann. Read More