Chang Koh Metal Ptd Ltd Case study

order to get the job done efficiently and cost effectively. It is hard to motivate factory workers who work on a

This research paper is based on the development and implementation of completely integrated performance management system. The organizations are enjoying many benefits by implementing the performance management system. It has helped in improving the productivity of employees in most of the organizations. It is to be understood that apart from advantages, the system also carries some disadvantages. It is time consuming and there are chances of biases entering into the system.

MTC initially needed to obtain substantial investment capital due to two main factors: a research-heavy industry, and the need to create most of the markets for its products. Although the founders' goal was to become a major manufacturing company, they did estimate that the company would need $50 million in capital before it would become self-sufficient. Their initial financing model was to first recruit a superior technical team, use that to attract additional equity investment and development funding from interested corporations, and then develop manufacturing capabilities. Commercial sales began 2.5 years after inception, and MTC is nearing the break-even point in 1990.

This schedule of reinforcement is the logic behind factory piecework, where workers are paid by the number of items produces rather than the number of hours worked.

Early behavioral theory also describes a hierarchy of needs of workers to entice motivation. There are five levels: physiological, security, social, esteem, self-actualization. It states that if a lower need (physiological needs) such as food, water, shelter is not met, the worker will not be focused on a higher need such as sociability (the social needs). The worker will be motivated to increase his wage so to buy more food. Galt’s current piece-rate does not allow for a socializing environment. If his workers want to socialize and cannot, then their motivational drive will not be focused on a self-actualization need but on a social need. Changing the system to flat rate will allow for social needs of workers to be met. Once social needs are met, early behavioral theory states esteem needs and self-actualization needs will follow.

Customer service is a crucial component to MetalWorks business since there are a number of competing products on the market.

* Employees might decrease rate of production as demand decreases to create an impression of need and to preserve jobs

Hence, person focused pay systems typically have higher average hourly wages than traditional pay systems. Since skill-based pay systems give everyone the opportunity to learn multiple skills, a large investment is made in training and, of course, training is costly in terms of paying trainers and losing production time. Furthermore, the more serious problem is that when individuals are constantly learning new jobs, production losses and problems result because inexperienced people are performing the work. Because employees are always trying to leam new skills under this kind of pay system,

Frederick W. Taylor was ahead of his time for his concept of Scientific management. It was a revolutionary way of running a business, that swept all over the globe, and his ideas were applicable to many different industries. Substituting disorder and conflict for a new untested method of control, cooperation, and science. Taylor understood there were no incentives for working harder. Knowing this, he payed workers based on output, allowing workers to make more money on any given day. It seemed like everyone would enjoy and prosper under this system, but that was not the case. Workers liked the opportunity to make more money in this system but many of them resisted this new idea. Being under constant supervision made work much harder for them.

This would not only be advantageous for the employer but also the employee since it would result in higher wages. Due to this, the worker’s level of motivation and drive to do better would escalate leading to overall productivity of the organization (Salimath and Jones, 2011, p.88).

Similarly, Cascio (1991) suggests that the combination of the following five requirements along with a performance based pay system can also have a very significant impact on performance. The first of these is skill variety, where a wide variety of tasks or procedures is available to the employee. Next is task identity, where the employee can clearly identify the output of a task as a product of their efforts. This is followed by task significance, where the work is recognised as important and meaningful. After this comes autonomy, where the employees have a major say in work planning and execution. The final requirement is feedback, where employees receive constructive advice or criticism on their performance.

“While Mangers complain about lack of motivation in their workers, they might as well consider the possibility that the reward systems they’ve installed are paying off for the opposite”.

There are very many factors that motivate employees to do outstanding work in their jobs. Though most of them are non-monetary factors like participative decision making, work teams, challenging jobs, goals in life or in the company, power and other factors. Most of the employees that emerge in their workplace, either in a small cubicle or a mega office have got some drive that enable them to perform in their work, but the key question is, is money is the key motivation in their workplace? In this essay both sides will be argued in order to find the answer to this (Robbins, Odendaal & Roodt, 2003).

1. The main criteria FEL uses to assign managers to their projects include time constraints and expertise. Clearly, managers with heavy workloads will not do as well as those without significant current time constraints. Hence, the likelihood that the work will progress smoothly under such managers is greater than otherwise. Expertise is also an important requirement to ensure that a project runs smoothly. Hence, the combination of low time constraints with the highest level of expertise appears to be a good basis for successful projects. However, one potential danger of assigning an apparently random number of managers to teams who need to work closely together could create communication problems, especially if these managers have not worked together before, or indeed if severe personality clashes occur. Hence, it might be a good idea to conduct regular assessments of the progress of the work as well as how well managers function together, particularly in a remote location such as Abu Dhabi.

Credit Accumulation & Transfer Scheme (CATS) – Undergraduate – Degree in Business & Management Studies