Things to do.

Machang need to address the solutions to the problem we have given. Because we have not mentioned for what problem we have given solution.No theory in place for any solution. Plus need to organize and plan the flow. If not we will loose marks. We need to add motivation to the solutions page with 2 theories atleast.

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Challenges faced by NEXT Garments with regards to People and

Development

By Team Alpha

Team Alpha

Dishan Panneerselvam Linesh Anandkumar Kanishka KDS Roshni Raja Hasini Ruwanpura Chathuri Ruwanpura Chamara Madusanka Pubudu Liyanage

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Why - Why (5Y) analysis has been conducted to analyze the root causes What is Why-Why Analysis:

Identify the issue and asking WHY the issue occurred until find the actual reason for the issue.

Face to face interviews with Human Resource Executives of the company

Observation of Internal statistics and other primary data sources (e.g Leave sheets)

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1.2 Research Methods used for Study…

Limitation…

Since the Next is a large scale manufacture of garments, we limited our study to a selected manufacturing area consisting of 750 lower level staff of one single factory to minimize the deviations of the study .

We have done our analysis based on the information provided by company Human Resource Executives.

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1.Introduction

Next is a UK based retailer offering existing, designed, quality fashion and accessories for men, women and children together with a full range of apparels

Currently Next is having: Next Retail ; a chain of more than 500 stores in the UK and Ireland Next Directory ; a home shopping catalogue and website with more than 2

million active customers; and Next international, with more than 180 throughout continental Europe,

Scandinavia serving the USA and 30 other countries worldwide. Next has currently employed 2,500 staff members with 4 factories in Sri Lanka

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1.1 Background of the Company

High rate of Absenteeism

High Staff Turnover rate

Conflicts within the team members(Inter-personal conflicts )

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1.2 Identified Key HR Challenges in Next Garment….

1.2.1 Absenteeism What is Absenteeism?

Absenteeism is typical non-presence of an employee in the work place. Some reasons that can cause an employee to be absent are personal issues, medical problems, and not satisfied with the occupation.

2 factors that absenteeism is caused by are medical(health related problems like sickness or migraine) and psychological ( job unhappiness and poor team morale )

When employees do not turn up to work place on time for the fixed schedule purpose, this called absenteeism

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1.2.1 Absenteeism In NEXT

Apr May ... June ... July ... Aug ... Sep ... Oct ... Nov ... Dec ... Jan ... Feb ... Mar Apr May ...0

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20

30

40

50

60

70

80

90

100

110

120

Family Issue Accident Hospitalzed M/Pool Transfers Personal reasonsSalary Issues Sickness Resignation/ VOP Line Issues

Transport isn’t provided to production staff Why?: Management isn’t concerned about employees travel facility. Why?: They do not know that lack of transport is affecting employee attendance. Why?: No proper Analysis was done by the management to find out this issue. Why?: No proper Training for the management to find the root cause.

Family Issues (Marriage, funerals, etc) Why?: Management does not give planned leaves for the family oriented issues Why?: This is not identified as part of the NEXT culture Why?: Next is not dealing with personal issues Why?: Lack of Communication between management and employees

Occupational Accidents Why?: No proper training given during orientation regarding safety methods. Why?: Management doesn’t give priority to employee safety. Why?: Staff not following the procedures / Managers not supervising 10

1.2.1 Absenteeism In NEXT (Contd…)

1.2.2 High Staff TurnoverWhat is High Staff Turnover? High turnover means that the employees leave the current

employment uninformed to the management at a higher percentage.

Some reasons to why that the turnover rate is high due to poor working conditions, low salary, long working hours, the negative working culture, and the benefits from the employer.

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1.2.2 Staff Turnover In NEXT

Recruitment procedure Why?: Improper screening currently

Walk in interviews are conducted every 6 months National identity card is the only security required Same day the job will be offered to the employee Due to this improper recruitment process in place, results in high

turnover No Loyalty

Why?: No salary increments Why?: No Career Advancements in the organization Why?: No proper opportunities in the hierarchy

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1.2.2 Staff Turnover (Contd..) 25 production staff are currently reporting to one leader referred to as the “Big sister”

25 members have to compete with each other to move up the ladder and that is demotivating for the employees.

No motivational action is taken to encourage the employees to climb the ladder in the organization

It is difficult for the Big sister to manage 25 employees at a time due to the lack of managerial skills.

One area manager should take care of a 150 member group. Most of the time he can maintain a good technical standard over HR skills; therefore this leads to not having proper personnel management.

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1.2.2 Staff Turnover (Contd..)

14Existing organization chart.

HR Area Manager 1

Supervisor 1Big Sister 1 Production

Staff 1-25

Big Sister 2 Production Staff 26-50

Supervisor 2Big Sister 3 Production

Staff 51-75Big Sister

4Production

Staff 76-100

Supervisor 3Big Sister 5

Production Staff 101-

125Big Sister 6

Production Staff 126-

150

1.2.2 Staff Turnover (Contd..)

Higher studies A Significant percentage of employee leave their current job

to continue higher studies. 27 % of fresh O/L & A/L graduates resign to continue their

higher studies.

Benefits compared to other companies Transport Medical insurance

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27%

73%

Leaving for higher studiesOther

1.2.2 Staff Turnover (Contd..) High targets

Management has set targets which are unachievable Increased mental and physical stress This can lead to health issues leads to job dissatisfaction Employees are demotivated and lose their morale

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Team Budget*

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Team A 2400 72% 78% 82% 77% 77% 76% 83% 86% 78% 76% 74% 75%

Team B 2400 88% 86% 87% 87% 85% 84% 83% 78% 79% 83% 82% 81%

Team C 2400 87% 85% 85% 84% 83% 82% 83% 81% 77% 79% 85% 82%

Team D 2400 79% 79% 78% 78% 74% 82% 81% 86% 85% 86% 87% 87%

Targets achieved by 4 teams in the past 12 months.*Targets set out in terms of number of shirts

1.2.3 Staff Conflicts

Reasons For Staff Conflicts

Bringing outside quarrels into the work place. i.e.- staff living in same place would bring their personal conflicts into the work environment disrupting the culture of the work place.

Conflicts occurring due to Sexual preference

Line and staff conflicts

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2. Solution to the challenges

Separate training for Managers and Team members

Change the mindset of managers according to his/her new position/environment

Implement Pre-shift meetings by the Big Sister to the team.

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2.1 Develop a training plan for Management & Team members

Solutions for Absenteeism

Letter 1 : INVITATION TO DISCIPLINARY LETTER(No contact by employee)The employee has not responded to the messages left by the supervisor after absenteeism. Letter is sent to attend a disciplinary meetingLetter 2 : INVITATION TO DISCIPLINARY LETTER(Contact made by employee)Employee responds to the letter. Following 10 days of unauthorized absence. Verbal warning advised about the disciplinary meeting and the letter will confirm the details in writing.Letter 3 : TERMINATION LETTEREmployee failed to contact and confirm their attendance at the disciplinary meeting within 48 hours of the meeting occurred. Failing to attend meeting, letter of termination will be sent to the employee.Letter 4 : WRITTEN WARNING LETTER Employee attends the disciplinary meeting. Listens to the explanations of the employee why he/she has been absent. Manager feels that the employee has an unacceptable reason for the absence then will be issued a written warning.Letter 5 : NO FURTHER ACTIONThe employee attends the meeting and gives a reasonable reason for the absence . No further action will be taken and will produce a letter confirming no further action for the employee.

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2.1 Develop a training plan for Management & Team members (Contd…)

Goal Learning Objectives

Learning Methods / Activities

Documentation / Evidence of

learningEvaluation

1. Pass supervisor qualification test

1. Exhibit required skills in problem solving and decision making

2. Exhibit required skills in delegation

1. Conduct a training in basic supervision

2.Address a major problem that includes making major decisions

3. Delegate to a certain employee for one month

1. Test Grade Pass or Fail

Sample training plan for supervisors/Team leads/Big sisters

Select the best performers as employee of the month to identify good performers & as a motivational tool

Best performers can be chosen as Team leaders, who manages smaller teams and report to the Big sister.

Provide HRM training for area managers.

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2.2 Restructure existing Hierarchy

22Proposed organization restructure chart

2.2 Restructure existing Hierarchy (Contd…)

HR Area Manager 1

Supervisor 1

Big Sister 1

Team Lead 1 Production Staff 1-4

Team Lead 2 Production Staff 5-9

Team Lead 3 Production Staff 10-14

Team Lead 4 Production Staff 15-19

Team Lead 5 Production Staff 20-24

Big Sister 2 Team Lead 6-10

Production Staff 26-50

Supervisor 2 ..... ...... .....

Supervisor 3 ..... ...... ......

Proper communication lines to have open discussions between management and teams, this will be achieved through Discussion boards.

Each employees can write issues other than the personal issues they may have on the board, and in a set period of time the Team Leader will see if he/she can resolve the issue.

If the issue is resolvable by him/ her then he will place a mark on the board. If the Team lead is unable to resolve it, then the matter will be escalated up the hierarchy

until it reaches a conclusion

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2.3 Communication between management and employees

Concerns Team Lead(8.30a.m,10.30a.m,12.30p.m)

Big sister (9.30a.m.,11.00a.m.,1.00p.m)

Supervisor (10.00a.m.,11.30a.m,1.30p.m)

Area Manager(10.30a.m,12.00p.m,2.00p.m)

HR(8.30 a.m.,4.30p.m)

1. xxxxxxxxxx

---- ---- ---- ----

2. Xxxxxxxxxx

× × ---- ----

3. Xxxxxxxxxx

× ---- ---- ----

Sample Discussion Board

Organize regular meetings between supervisors and Area managers If NEXT Garment’s management is willing to adopt the newly

proposed hierarchy then it is recommended to have the Team leaders present in the meeting as well.

This would help bring to notice the issues faced in lower level staff to the management

Establish an open door culture Any level of staff should be able to speak to a higher level

management personnel to discuss their matters at any given time.

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2.3 Communication between management and employees (Contd…)

Implement the use of a Standard work chart for production staff

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Sample Standard Work Chart. Retrieved from: http://artoflean.com/blog/wp-content/uploads/2011/01/SW-Chart-1024x791.jpg

2.3 Communication between management and employees (Contd..)

AdvertisingLong term plan –do

not recruit short term employee

Short list applicantsBackground check with previous employer

Interview with Big sister

Interview with the HR Executive

Sign Contract after

approval from the 2 interviews

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Orientation

REVISED RECRUITMENT PLAN

Thomas Killmann Model – Dealing with conflicts

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Assertive

Unassertive

Assertiveness

Uncooperative CooperativeCooperativeness

Thomas- Killmann Conflict Modes Competing – Win / Lose Avoiding - Maintain neutrality Compromising - Split the difference with the other party to

reach a quick agreement Collaborating - Expand range of possible options and achieve

win/win outcomes Accommodating - Maintain Harmony

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How to maintain Harmony??? We suggest to have a MEDIATOR in the organization The mediator will be selected from the employees itself. The supervisor will work as the mediator for the staff

working under him.

Conflict Mediation Harmony

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3. ConclusionKey challengers:

High rate of Absenteeism than industry standards.High Staff Turnover rate than industry standardsConflicts with the staff members

Key Remedies:Develop a training plan for Management & Team membersRestructure existing HierarchyDevelop a proper recruitment planEstablish a Communication channel between management and employees

Include Supervisor level staff for target planning stage

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References

Knotts n.d., Line and Staff Organisations. Available from: <http://www.referenceforbusiness.com/management/Int-Loc/Line-and-Staff-Organizations.html> [25 June 2015]

 Thomas-Kilmann Conflict Mode Instrument (TKI) . 2015. Thomas-Kilmann Conflict Mode Instrument (TKI) . [ONLINE] Available at:https://www.cpp.com/products/tki/index.aspx. [13 August 2015].

Senge, P., 2004. Fifth Discipline. 1st edition. 139: Currency Doubieday. How to Reduce Employee Turnover - Management - WSJ.com. 2015.  [ONLINE] Available

at: http://guides.wsj.com/management/recruiting-hiring-and-firing/how-to-reduce-employee-turnover/. [25 August 2015].

Absenteeism | Labour Guide. 2015. [ONLINE] Available at: http://www.labourguide.co.za/absenteeism. [01 July 2015].

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