Managing Investments In Employees

Published Date: 02 Nov 2017

Closing a factory: Change Management

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AUDHARYA SURYA KUMARGOWDA BANNIMUKKODLU

K1267249

PLAGIARISM

NAME: Audharya SuryaKumar Gowda Bannimukkodlu

STUDENT NUMBER: K1267249

I hereby declare that:

I fully understand the university’s definition of plagiarism.

Other people’s work used in this assignment has been properly acknowledged and referenced.

The additional work presented has been done by me.

Signed:

AUDHARYA SURYA KUMARGOWDA BANNIMUKKODLU

(K1267249)

Contents

INTRODUCTION:

Management choices have a relatively high influence on the employees and management of the business than the closure of the factory. Considering the global economic violence, the number of factory closure has increased. Change management requires a very carefully outlined and a discreet intervention, a conversation with and inclusion of all the people who are affected by the changes. When a change is forced on any employee it is certain that mostly problems will arise.

This paper is about a case study based on the change management of closing of a factory. The case study is about the closure of one of the plants of Edmondson UK at Saltash Cornwall. The Edmondson UK is one of the companies that is controlled by its holding company which is the Big Bucks corporation. Big Bucks corporation is in the UK it produces a number of special products to many factories around the UK. Due to the huge growth of the Big Bucks Corporation the Saltash factory was opened in 1992. The Saltash factory had a high demand in 2008, but due to the drastic decrease in the past few years it decided to close the Saltash plant. A total of 87 people were employed at the time of closure of the Saltash plant.

The deadline for the closure of the factory was 12months. To accomplish a well planned and a secure closure, a step by step plan has to be constructed which should be completed in a given time period. This planned case study will cover all the required information; the needful will be done for the employees. This case study will mainly focus on the real world scenario and will provide a performance improvement strategy for the company.

JUSTIFICATION:

The closure has been a bad news for the whole company so it is required that the closure is managed in a careful manner and it is necessary that the circumstance of the closure is made clear and should be managed in a way such that people can deal with it. The management of the company must take the required duration to please its employees and also should satisfy the requisites of the company. Generally people tend to stick to the same situation rather than opting for a change in the situation, which shows there unwillingness towards change. A better way of management would be to influence people to accept changes. In this case study, duration of one year is given to bring a change and to influence the employees for a profit that they would gain after the closure. The employees should be regularly made aware of the need for the closure and they should participate and support the closure. The employees should be given a clear picture of the closure and the impact it would create on their jobs. The company can achieve its target by motivating its employees to support and corporate with the change. Mostly it is expected for the employees to go against the whole situation but this shouldn’t be the case, defence shouldn’t be the solution it should be removed by communicating with the employees. An early plan is required to overcome hindrance in the process of closing down and appropriate steps have to be taken to oppose them.

The type of solution to be taken is:

Make sure that a well planned change has been made.

Whenever any change is required to be made in a company extra work force is required to complete it.

The manager/director of the company has to make sure that the plan is going accordingly towards the right direction and should take care that everyone working follows the plan.

The manager/director and employee of the company should have a regular face to face conversation.

In this case study we will be talking about the aid that the staff will require to maintain its 12 months of production and also to prepare for the next stage of life and also what the company would offer them to justify the circumstances.

The company’s plans for the next 12 months are as follows:-

There will be 3 shifts

The employees will be provided with a detailed explanation about the closure

The employee’s career and future after the closure will be discussed

After 6 months

There will be 2 shifts.

The number of employees will be reduced here and some of the products and employees will be added to another factory

If any employee wishes to resign with compensation they are free to resign.

RISKS:

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It was decided by Big Bucks Corporation to close the factory in Saltash by mid 2009 in a time frame of 12 months and finalises the closure by mid 2010.

Some of the risks involved that were faced are as follows:

It was a challenging task to keep 87 staff working hard till the mid 2010

Making sure that the change was achieved in a given time frame and budget and was of good quality.

Coping with the high absence rate that may occur.

Coping with the staff and making sure that they are motivated towards the change.

One of the main risks was the security.

CHANGE MANAGEMENT:

The basic requirements of change management

The requirements should be identified

A review should be done and an impact analysis should be performed

Log the impact schedule and approvals

If the change has been approved then implement the change.

Supporting: It supports the base that is required to implement the changes.

Integrating: The activities and ventures should be well arranged when implemented on any major companies change.

Selling: Regular management methods should be used when facilitating change and intensifying aids.

Educating: The employees should be provided with the required training to provide effective work.

Communicating: There has to be face to face communication frequently between the manager and its employees to achieve the change.

Leading: There should be support from all of the leaders within the organisation.

Visioning: To get a clear picture about the future after the change is implemented.

Assessing: Explaining the type of impact that the change will create on the company.

Participating: Making sure that every person who is a part of the company and affected by the closure involve in managing the change.

Transitioning: Plans made to move smoothly from the present state to the future.

In this condition the most important thing is to motivate the employees. This situation of the company will affect the employees badly and will create a bad remark of the company on its employees. At this stage are the employees safe, loyal and taken care of or are they being used and do they feel helpless and miserable. Some of the employees may not have an idea as to what would happen in their future. The company manager and director should make sure that they put in full effort in convincing its employees and in making them believe in the future plans and support the company till closure.

The management of the company are making plans to place the workers in other positions in the company. Each employees skills are been identified and they are been trained and appointed in the other branches of the company. The employees who plan to resign with compensation are free to resign. The employees who have just started their career can continue to work and support them until the closure, because of the contract that was signed at the beginning the company can encourage them to work by increasing the pay and making it a little higher than the regular pay.

PROJECT PLAN:

In this case study the problem to be solved is to make sure that a well planned and a safe closure is being achieved and on the other hand a agreed production schedule of time and quality is been considered. Some of the issues were required to be achieved like producing the requirements within a given time in a good quality and standard.

Some of the steps to be taken are

Managing communication

Managing closure

Managing investments in employees

Managing continuity of operations

Managing communication:

The first stage is the closure annocement plan as to how to indicate the closure and the timings to make the information available to all the people in an organization. The second stage is the corporate aim or vision for closure it explains as to how we can determine the level of success that can be achieved by the closure. The third stage is the ongoing progress report it is a detailed explanation on the closure plan to make sure that everyone are clear with the plan.

Managing closure:

The first stage is the production output plan it defines the degree of future work during the fatigued time. The company is dependent on the existing workforce once the closure disclosure has been made. The second stage is the separation policies which can be either deliberate or a must. Based on the choice been made it will indicate the employees that will stay during the closure period. The third stage is the development of production plan which is the period starting from the point of closure to the final point of closure. The fourth stage is the simplification of operations this is to decrease the difficulty and cost of the action to be done which would result in the closure.

Managing investments in employees:

The first stage is the counselling of all the employees which is required for those employees who wish to quit the job and not be a part of the closure. The second stage is the training of manager for new responsibilities the people who are promoted to a senior manager level are given training to meet up the requirements for their new role. The third stage is the training of the remaining survivors this is for the employees who remain working in the company during the closure or for the employees who have been given a job at the company’s other branches.

Managing continuity of operations:

The first stage is the creation of a multi functional leadership team this is difficult to implement and thus the plan is complex. The second stage is the agreement for flexible working periods this is because the work load and the number of tasks are higher than normal on each of the employees. The third stage is the involvement of trade unions and employees in closure management to achieve the target of the closure the support of the employees is required. The fourth stage is the performance measurement it is used to keep track of the plant improvement and also indicates the emotional times of the employees and the level of success required to achieve the closure target.

COST & BENEFITS:

The cost will be from the following areas :

Rewarding the employees by giving them a bonus and increasing their salary.

Providing support and motivation to the employees

Providing training to the employees and managers.

Some of the benefits of closure are:

A strong understanding is formed between the manager and its employees.

By investing on the employees a good improvement will be seen.

The experience that is gained by the closure of the company.