The administration believed they involved the employees in decision making which was again just an assumption because the representatives had not even been involved in the decision to computerize and have a database system. The employees were never asked since they were simply told to do what the management thought was good for the company. This strategy backfired! The management believed their communication channel was informal and easily accessible to all employees and in fact 20% representatives felt their influence on any decision was quite small and 54% voted moderate influence over decisions.
The database system had problems since the targets for one representative were appearing under another one’s name and data was being lost since the system crashed periodically. Employees felt that computers had increased their responsibilities rather than making work simple and easy. Since the focus was more on fixing the system rather than achieving the sales targets. 45% felt computers made their job easier whereas 50% felt computers had made their jobs difficult. 80% felt computers had increased the number of hours they worked and reduced productivity comparatively whereas only 2% thought working hours decreased comparatively. It is important to train employees after implementing a new system and this company made the mistake of assuming that their employees would learn on their own. The response to the problems in the system from the management was poor. Due to these problems turnover increased to 50% and the Human Resource manager was least bothered and this was another mistake on the management’s part. The strategy eventually failed and employees marched out of the company all bothered over the fact that the management did not care whether they stayed in the organization or not since the administration thought they would hire new and efficient employees whereas retention is one of the most important strategies in human resource management.
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