The Automotive Industry

Published Date: 02 Nov 2017

Grupo Master Peru has continued to be a very profitable organization focusing on the fulfilling of their clients expectations, however, since its personal work has been an issue, the organization needs to implement a proper human resources department to keep a track in their employees as well as a motivation plan to motivate employees with financial and non – financial methods, such as: contests, parties, bonuses, amongst others. This assignment looks to implement the most appropriate strategies that can lead to greater organizational efficiency and thus increased profits, so as, to maintain its leadership in the automotive industry.

The analysis and discussion section will evaluate his organization’s current advantages and issues involving the reasons of why having a proper motivation plan, human resources department its so important for the development and growth of the organization. The conclusion will state the possible strategies and methods of motivation that the organization could apply classifying them into financial and non-financial incentives.

RESEARCH PROPOSAL

RATIONALE

GRUPO MASTER PERU is a family run business in the automotive industry. The company has a lot of presence in that national market and is dedicated in the importation of brakes and car parts and the fabrication of some of them such as pads. The company has increased in size, size productivity and personnel over the last 17 years and has had certain issues concerning the varying abilities of the personnel that have been employed. The company is looking into different ways into improving the training skills of the workforce.

THEORETICAL FRAMEWORK

I will be analyzing the different levels of ability for which people are required to work in the company and also see where the employees currently are. As well as interviewing people that currently work for the company to see what are the certain difficulties that affect them or has consequence in their performance level and effectiveness at work. This research will give possible solutions to motivate and increase efficiency. The report will look to show also non-financial motivation strategies.

KEY AREAS OF THE SYLLABUS

1.7  GROWTH AND EVOLUTION.

1.8  CHANGE AND THE MANAGEMENT OF CHANGE.

2.0  HR PLANNING.

2.2  ORGANIZATIONAL STRUCTURE.

2.3  COMMUNICATION.

2.4  LEADERSHIP AND MANAGEMENT.

2.5  MOTIVATION.

POSSIBLE PROBLEMS AND SOLUTIONS

METHODOLOGY

Primary Research

First Step: I will ask the Human Resources Manager what is her point of view of how the staff is working and what could be improved, as well as what is being done for it to happen. Also I would want to know what the procedures the staff are doing right and wrong, because the organization is currently facing problems; more importantly; the loss of customers because they are not being attended to correctly.

Second Step: After making the two sample questionnaires, I will show them to the Human Resources Manager waiting for her approval. Subsequently, a specific date will be sent to all employees to fill in the questionnaires. (The questionnaires do not require a name, in order to provide anonymity).

Secondary Research

First Step: I will review the number of employees and the requisites they (Grupo Master Peru) ask for people that would want to work in. Additionally, I will look at three different types of records; "dias master", absences and extra hours, as those three are directly linked to the issues I will be addressing throughout the study, because they are either motivating or affecting the organization itself.

Action Plan

INTRODUCTION

Grupo Master Peru is a family business in the automotive industry. The organization has increased in size, productivity and personnel over the last 17 years.

Grupo Master Peru is currently affected by a demotivated environment within its offices. This, in fact is the main cause of many problems which are affecting the organization itself, by delaying internal processes and not accomplishing basic day to day responsibilities. These problems include; delays in deliveries, tardiness, lack of communication and low performance in the tasks assigned, as well as same and constant mistakes.

In order to repair the damage of this problem, Grupo Master Peru has started seeking for new alternatives for personal growth and development to secure the well-being of the organization. The question that has been planted is: How can Grupo Master Peru improve efficiency and productivity by addressing issues of motivation?

PROCEDURE/METHOD

The methodology applied for this assignment will consist mainly on primary and secondary research. It involves information about the workforce opinions about the current management and their criticized performance, as well as what they think could be done to improve the things in which they don’t agree. On the other hand, secondary research consists of the tardiness records of the company, in order to address discontent from the workforce.

The primary research for this report was based on a survey of the workforce. The primary research was divided into two parts, there were two questionnaires which differed significantly, the first one where "free" questions, where employees could write how they felt inside the organization, including if they are comfortable with what they do/receive, amongst others in order to obtain different perspectives and points of view. Whilst the second questionnaire were more straightforward questions; asking if directly they felt comfortable with the various factors which may directly affect their performance for day to day responsibilities.

Secondary Research, instead, consists mainly of records, especially, tardiness records, as according to some researches it remarks how discontent employees feel about their job. Hence, if there is a considerable amount of demotivation in the company, tardiness is directly linked to the problem of demotivation.

MAIN RESULTS AND FINDINGS

The information presented in this section was obtained doing primary and secondary research methods. Primary research was obtained from a survey with the entire workforce of Grupo Master Peru. This information shows the workforce’s opinion about the current management and what things they feel either comfortable or not. This includes; salaries, physical distribution, laboral relationship, amongst others. Secondary research, instead, was obtained using information from the company, which includes, absence, extra hours and "Dias Master [1] " records which occurred within the month of February (the month the study was conducted in). The section is covered by five tables.

 Primary Research

Results: Breña (Office Centre)

Table # 1 showing the five questions asked to the workforce of whether they agree or not on certain aspects of the organization.

Results: Villa el Salvador (Plant)

Table # 2 showing the five questions asked to the workforce of whether they agree or not on certain aspects of the organization.

 Secondary Research

Note: Grupo Master Peru is an organizational group made up of three organizations called; Frenos y Autopartes Master S.A, Industrias de Friccion Master S.A.C (Infrima) and Distribuidora Autoquip S.A.

Table # 3 showing Grupo Master Peru’s records of "Dias Master" in February

Table # 4 showing Grupo Master Peru’s records of the absences which occurred in February 2013

Table # 5 showing Grupo Master Peru’s records of extra hours performed in February 2013

ANALYSIS AND DISCUSSION

Grupo Master Peru has been affected by a very significant situation in regards to its personnel. Within work, a high degree of demotivation exists. This has led to a high grade of disconformity, absences, staff turnover, and low levels of trust amongst employees. These factors have caused a decrease in efficiency and productivity during the day to day responsibilities of the staff, and has being, over the long-term affecting the organization's continual growth and development.

One of the issues that is causing discomfort amongst co-workers is directly linked to the money they receive for what they do, which in most cases, they think is too little for the amount of work they have to do. Nevertheless, the strict and rigid rules that have been put to them for a better and fairer environment are not liked by most of them. Communication, in fact, is not fluid amongst workers, and hence has caused an unfavorable environment amongst members of the staff.

These problems are causing communication in the company to be excessively vertical with fear of superiors, which reflects the low levels of trust between all members of the organization. This in turn leads to a lack of commitment and low performance in regards to the tasks assigned.  Employees in the organization think that their superiors do not assess their work the way they want it to be. This, in fact, generates resentment and apathy amongst employees to their superiors, leading to, in most of the cases of them wanting to quit.

One of the other factors that are bothering the employees is the policy on of the tardiness, where there is no tolerance. The policy is; if you arrive late, you don't work and you don't get paid for that day. This policy was applied as a matter of principle. This policy, even though it’s applied for fairness purposes, is the cause of constant and increasing absences, hence delaying the tasks that are assigned to the employees and therefore affecting the whole development of internal processes.

The causes of lack of commitment start with the tardiness of employers. Arriving on time is a commitment that the employee has with his job. Studies have demonstrated that arriving late to work is a sample that, that person is not fully content of their work for different reasons, for example paid little for lots of work. Punctuality is directly linked to; commitment and involvement with the organization, and reflects how satisfied that person is when they finish an assigned task. Workers that arrive on time tend to be more ambitious with the work they perform.

Furthermore, at the plant, workers complain about the lack of space to put the merchandise and especially how organized it is, as it makes it difficult to accelerate processes of delivery.  Along with this, comes the lack of space where employees have to coexist, taking, for example; the kitchen, which they don’t consider it to be in good state and in proper conditions for them to eat, as well as the bathrooms. Those little factors are the ones who, apart from payment and treatment given by subordinates determine the time an employee will work for the organization. Moreover, employees at the plant feel marginalized, because they receive different treatments and opportunities, being the clear ones; places where they have to exist and payments.

As there is high staff turnover, most of the new employees think that they receive a different treatment than the ones who have been there for more time regarding the opportunities they might have to accomplish some tasks. These differences are complained by the new employees, as the old ones receive, in most of the cases a higher payment and more opportunities for personal development.

Having demotivated personnel brings less efficiency, constant errors, lack of commitment and implication with their work and brings higher rates of absences, affecting the organization itself. It has been demonstrated, that in Grupo Master Peru, most of the employees have a certain fear to their superiors, hence they don't feel comfortable when talking to them about something that may be bothering them at work. Demotivated personnel lead to high staff turnover, either because of quitclaims or dismissals for poor work. This, in fact, produces instability and insecurity for the other employees.

Grupo Master Peru is making a lot of effort to reinforce the companionship in the organization taking human talent as a fundamental tool for the success of the organization. In order to achieve so, it is necessary to attend all of the necessities and expectations for personal development seeking for major commitment and identification with the organization as well as implementing a proper and solid human resources department.

A solid Human Resources department can help cut workload and allow delegating important tasks to others without any fear that they won’t be done correctly. Proper Human Resources play a huge role in goal achievement of an organization. Human Resources performance measures are usually used to help an employee keep track of their development within the company. This is also a way for management to keep track of each employee, their growth, areas for improvement and more. Proper monitoring can ensure an entire team working at their absolute best at all times. Additionally, this can help to know who is eligible for prizes, awards, promotions and other things. In order to achieve so, the staff needs to be properly trained and have nurtured skills so the quality of work can improve and boost their morale with contests, parties, days off. [1]

In order to do so, Grupo Master Peru has set out specific dates for the contests and parties to happen. Four times a year there will be different office and areas of work decoration contests [2] . Furthermore, every end of year there is a big party, with an orchestra, food and drinks, for staff to have fun and interact with everyone. Moreover, the idea of a "Master Day" was created, leaving by election of the employees a day a year where they don’t have to work and still getting paid for that day, with of course, previous coordination.

In order to avoid tardiness, the organization will start giving bonuses for those who arrive on time [3] . As, in Lima, traffic is a major issue, employees have been given 10 minutes of tolerance for the whole month of working, if those minutes are exceeded then the employee will not be allowed to work for a day and have no more tolerance for the rest of the month. Despite this, subordinates have to arrive 30 minutes earlier than the rest of the workforce to give examples of how to care and respect their jobs, in order to motivate and "force" employees to arrive on time. Additionally, flexibility within times is being applied as well, if you will arrive late, with previous coordination, hours can be compensated staying after hours or doing extra tasks.

Grupo Master Peru, is making constant efforts to improve the quality of the work of their personnel, hence apart from this possibility, a fairer environment is being created in the organization where everyone deserves respect and being treated properly, as well as professionally. Despite that fact, within every office there is a big picture of the organization’s mission and goals, for employees to know whether they are achieving or not the tasks that are assigned to them. Besides this, the organization has created "Portal F" [4] , which will inform all employees important events that are about to happen, and might be of their concern.

CONCLUSIONS AND RECOMMENDATIONS

Grupo Master Peru has been a profitable organization during its 17 years of existence, this is due to the persistence and dedication from the owners and employees that have been there since 1996 (foundation year). However, currently the organization has been having some problems regarding its staff and human resources department. This problem has directly affected the day to day tasks and responsibilities of all employees. Grupo Master Peru is implementing some policies in order to solve this problem, and its making constant efforts for implementing a proper Human resources department.

Motivation is the key for success, highly motivated staff will bring prosperous and profitable rewards to the organization. Motivation energizes, maintains and controls behavior as well as retaining a high level of innovation bringing a higher quality of work; hence, more efficiency and productivity. Salary its what keeps people working for the organization, but this is not what motivates them to give the best they can in their day to day responsibilities. Implementing proper human resources will improve his quality of work and provide direction for the people who work for the organization. Motivations methods have been applied in Grupo Master Peru, regardless raising salaries, the organization is seeking for a major commitment to their tasks and superiors by contests, bonuses, amongst others.