bài tập QUẢN TRỊ NGUỒN NHÂN lực về tạo động lực e

Analyse the company’s situation Bubba Grump Shrimp‘s situation Bubba Grump Shrimp Company is an American enterprise in Vietnam Its business is buying shrimps, building brand names for them and then selling in American market Facts about the company is as follows :  50 employees, 25 of whom are telephone sales agents selling shrimp to American market The rest help with office work Five of them are responsible for shrimp purchasing  Each sales employees earn US$ 900/month regardless of their turnover They feel ‘bored’ with their jobs and at times only make 10 calls a day while they can actually call 90 times per day  Office assistants complain that they « have nothing to » and use their time at work to play games and check personal emails They frequently spend hours for lunch and walk a long distance to buy the one that cost only 20.000 VND After lunch, these office assistants also take a siesta and miss some working targets These workers earn US$ 600/month  The company’s turnover is US$ 30 million/ year and profit margin is 15% after tax, which is high in the field  The company want to increase the sales US$ 50 million/ year ; however, the manager doesn’t seem to make the emloyees sell more products He asked for 25 more workers The manager said that more employees would mean more profits  The company is ready to issue shares on the market and has only shareholders  Human resource manager complains that the comapny is losing its employees by 40%/ year and the cost of recruitmenting, selecting and training for every new worker is US$ 5500 Human resource Analysis According to the summary of Bubba Gump Shrimp’s situation, its human resource has the following major characteristics: - Employee structure and quantity: Of the 50 employees, 25 directly sell shrimps to the American market, purchase shrimps and the others help with office work Therefore, Bubba Gump Shrimp has 25 direct labors, 25 assisstant labors and the ratio of assistant labor to direct labor is 1/1, which is rather high for a trading enterprise - Qualifications, skills, capacity and attitude of employees: with the cost of recruiting, selecting and training for every new employee is US$ 5500, workers at Bubba Gump Shrimp Co are recruited and trained professionally, well-qualified and skillful However, their current attitude towards working is negative and thus their performance suffers For example, the sales staff (direct labors) make only 10 calls per day though they can actually make 90, and office staff (assistant labors) are idle, spending up to hours for lunch, taking siesta and missing targets - Working attraction and satisfaction: Jobs at Bubba Gump Shrimp Co not appeal much to employees, sales staff feel ‘Bored’ with their jobs; office staff complains that they “have nothing to do” and spend time playing games and checking personal emails Each sales man earns US$ 900/month regardless of turnover and assistant employee earns US$ 600/month; they are also dissatisfied with such uninspiring jobs - Human Resource management policies: Bubba Gump Shrimp Co hasn’t yet had reward and discipline policies to motivate its workers Therefore, according to the manager, the company is losing employees by 40% per year - Managing style of managers: the managers’ skills are not efficient enough; they cannot motivate workers to sell more products and work to their best In order to increase the company’s sales form US$ 30 million /year to US$ 50 million USD/year, a manager suggested recruiting and training 25 more employees Business plan The goal of the company is to increase sales from US$ 30 million/year to US$ 50 million/year Human Resource Management Plan In order to increase the company’s sales from US$ 30 million /year to US$ 50 million USD/year, let’s compare and select from solutions as follows: Solution 1: Recruit and train 25 new employees One manager of the company’s suggested recruiting and training 25 more employees He claimed that more workers will mean more profits Solution 2: Design a profit-sharing program to motivate employees According to Navigos Group, almost all employees consider wages (it’s means money !) as the main motivation for working Based on this fact, I think it is necessary to design a program of sharing profits to motivate employees The company should reward workers and create a bigger pie, thereby making more profits from the smaller share of the company owner The main contents of this program are :  Keep all 50 employees  Design wage policy: Determine base salary corresponding with basic job description and turnover of each employee The base salary for sales staff is US$ 900/ person and for office staff is US$ 600 / person  Design bonus policy: With various types of bonus such as work efficiency bonus, new customer bonus, sales percentage bonus, etc  Regulate the amount of preferred shares to be issued and shares reward for excellent employees This solution may increase emploees’ income by 250% if they could work more hard & efficient PART 2: Compare and select from solutions for human resource management Compare the mentioned solutions: Recruiting, training new employees and Designing a program of sharing profit to motivate employees The appointed target of the company is to increase sales from US$ 30 million /year to US$ 50 million USD/year with profit margin of 15% per year, which means increasing net profit by US$ million/year from US$ 4.5 million/year to US$ 7.5 million/year Cost 1.1- Recruiting and training new employees + The cost of recruiting and training new employees is US$ 5500/person Therefore, recruiting 25 new workers will cost US$ 137,500 in total + The number of employees in Bubba Gump Shrimp Co will be 75 people Supposing that the 25 new workers help sell more products and raise profits, the company will have to pay more 900 USD x 25 = 22,500 USD + The total expense for recruiting and training new 25 employees will be: 137,500 + 22.500 = 160,000 USD 1.2- Designing a profit-sharing program to motivate employees Supposing that the company, in order to motiveate its workers, augments wages by 2.5 times, the total added expense will be: (900 USD x 25 + 600 USD x 25) x (2.5 -1) = 37,500 USD x (2.5-1) = 56,250 USD In conclusion, the expense of recruiting and training new employees is higher than that of designing a profit-sharing program by: 160,000 USD – 56,250 USD = 103,750 USD Efficiency 2.1- Recruiting and training new employees After recruitment, Bubba Gump Shrimp Co will have 50 sales agents Supposing that because the salary remains unchanged and therefore each of them, instead of making 90 phone calls, only makes 10 calls per day, 50 agents will make in a day 500 phone calls and in a year: 500 calls/day x 240 days/year = 120,000 calls/year Supposing all these phone calls are effective, we will have 120,000 effective phone calls corresponding with sales of US$ 60 million (in the past, company has 25 sales agents and they reached a turnover of 30 millions USD) 2.2- Designing a profit-sharing program to motivate employees In order to increase work attraction and employees’ satisfaction, the company augments wages by 2.5 times (including both salary and bonus), which excites employees and and makes them work to their best Every day, each sales man makes 90 phone calls Therefore, 25 workers make 2250 calls a day So, in a year, they call: 2250 x 240 day/year = 540,000 times Also supposing that all these phone calls are effective, with the premise that “120,000 effective phone calls correspond with sales of US$ 60 million/year”, we can conclude that the sales corresponding with 540,000 phone calls is US$ 135 million: (540,000 calls/year x US$ 60,000,000 /year) / 120.000 calls/year = US$ 270,000,000/year So, by carrying out this solution, the sales of the company may reach US$ 270 million/year (Much more than that of the first solution) In short, the profit-sharing program designed to motive employees rewards workers and makes a « bigger pie », thereby making more profits from the smaller shares of the owners Conclusion After comparing the two solutions, we should select the one that is “designing a profitsharing program to motivate employees” for its low cost and high efficiency PART 3: The profit-sharing program designed to motivate employees The main purpose that the profit-sharing program serves is to determine the appropriate wages for employees so as to motivate them and in turn, the company will reach its sales and profit targets Major tasks include: set up regulations for wages, bonuses and rewarding preferred shares 1-Establish payment regulations A good pay system will help an enterprise maintain its current body of employees and attract skilled employees In addition to this, it may also enhance productivity and work quality as well as keep up fair treatment to all employees In the process of regulating wages, we should take into consideration the following matters: a- Referendum The goals of a referendum are to understand the real demand and opinions of employees and avoid subjective errors Necessary information for a referendum includes: + Pros and Cons of the current pay system + Matters that need changing + Personal opinions of salary regulations + Other related matters b- Set up wages regulations Pay council needs to gather opinions and take these into consideration At the same time, based on other factors, the council defines appropriate salaries and regulations The core matters are to determine the base salary corresponding with the basic job description and correlate wages in reality with business efficiency # Employee’s salary structure Employee’s salary structure: S = SBM + SPM + SEQ In which: S: Employee’s salary SBM: Employee’s monthly base salary SPM: Employee’s monthly performance & ranking-based salary SEQ: Employee’s quarterly effiency-based salary # Determining monthly base salary (SBM) Employee’s monthly base salary includes: base salary according to the company’s regulations, bonues correlating with the number of working days and holidays as in The Labor Act Monthly base salary of an individual is calculated by the formula: SBM = SBD x NDP In which: SBD: Base salary correlating with the number of working day NDP: The number of paid day in a month including: working days, conference days, training days and paid holidays as regulated in the Labor Acts SBD: Base salary correlating with the number of working day is calculated by the formula: SBD = SBM / NBM In which: SBM: Monthly base salary NBM: The number of paid days # Determining monthly ranking-based salary (SPM) Based on individual’s ranking, monthly ranking-based salary is calculated by the formula: SPM = SPD x Hp x Ndm x Hc In which: SPM: monthly ranking-based salary SPD: daily ranking-based salary (subject to changes annually) Hp: ranking coefficient Hc: monthly work completion coefficient Ndm: the number of paid days in a month (including: working days, conference days, training days and paid holidays as regulated in the Labor Acts) + Monthly work completion of each individual is determined by work results of that individual in a month compared to assigned work plan and arising tasks, as well as work awareness + Monthly work completion coefficient of an individual can be rated on a 10-level scale from to + An individual achieving the highest monthly work completion coeffiecient (1) complete all assigned tasks on time and with quality and strictly follow the company’s regulations + An individual receives the lowest monthly work completion coeeffient (0) when he: - Either does not complete his assigned tasks on time and with quality - Or refuse or avoid complementing assigned tasks in the month without acceptable excuses The monthly work completion coefficient of each individual is determined by his Department Manager at the end of the month and then forwarded to Human Resource Department # Determining quarterly efficiency-based salary (SEQj) After determining quarterly efficiency-based fund for each department, we can pay each employee as follows: QSEQĐi SEQj = - x (Hpj x Hcj x NPj) (Hpi x Hci x NPi) In which: SEQj: Quarterly efficiency-based salary for j th employee in i th department QSEQĐi: quarterly efficiency-based payment fund for department ith Hpj: Ranking coefficient of jth employee in i th department Hcj: work efficiency coefficient of jth employee in i th department Npj: the number of paid days in a quarter of jth employee in i th department (including working days, conference days) # Paydays On the 15th of every month, pay employees 100% base salaries On the 5th of the next month, pay employees ranking-based salaries and subtract from that the paid part for absence days In the payment formula above, we have mentioned plans for base salary, ranking-, efficiency- and workingday-based salary, of which quarterly efficiency-based salary is the most important since it associates payment with efficiency, task completion, working days and ranking, etc In this way, employees will be highly motivated to work to their best and sell as many products as possible to earn more c- Issue and apply payment policies Before issueing and applying payment policies, the company needs to hold a meeting and referendum The clearer the policies, the more motivated the workers Payment for each individual is confidential; however, the method of calculating wages must be clear and straightforward 2- Establish bonus policies In order to highly motivate employees, the company needs to establish policies for bonuses and commissions (in this paper, we will discuss only monetary bonuses) The company should draw some % from the profits earned to reward individuals and departments with excellent business results Reward subjects usually include individuals and bodies with excellent working results, seniority and great contribution to the whole company’s development as well as efficiency a) Annual Bonuses: Annually, provided that the company is making profits, it should spare some revenue to reward employees, depending on the amount of total profits earned The detailed bonus for each individual correleates with his own contribution, working quality and regulation obedience and is calculated according to the percentage of total annual salary This percentage depends on the business situation of the year and Director’s decision b) Holiday bonuses for 30/4 & 1/5, 2/9 and 1/1: Based on the business results, the company should pay from VND 200,000 to VND 1,000,000 per person to encourage employees c) Seniority-based bonus: In order to encourage employees to work long-term for the company, it should pay seniority-bonuses at the end of lunar year The number of month working for the company must be checked for details (more than 15 odd days can be round up to a month) Seniority-based bonus = the number of working months x seniority-based bonus/month Depending on the business results, the company’s director will decide bonus per month d) Sales-based bonus: Sales Deparment achieving the assigned turnover will receive monthly commissions In case turnover exceeds expectations/ targets, the department should report to the Board of Managers and suggest bonus for each individual, which will be paid along with monthly salary Sales staff and assistant staff may enjoy a monthly bonus up to 150% of their base salary (Base salary is US$ 900 for sales staff and US$ 600 for assistant staff) if their sales exceeds target e) New customer bonus: When a sales staff or assistant staff finds a new customer, the company should pay a bonus of -10% profit of the first contract with the customer f) Project-based bonus: For each project well complemented, an individual will earn some commissions depending on the profits of the project The Board of Directors will meet and decide the commissions for each case 3- Establish policy for issuing employee stock options Maintaining the employee body by rewarding preferred shares is a new and practical strategy Employee stock option (ESO) has been applied world-wide for the last decade, especially in England, the United States of America, Australia and Canada, etc , because it encourages employees to raise productivity, enhance management and helps developing a positive image for the company This is an effective tool to motivate workers, bind personal interest with the whole company’s development, attract and keep talented employees There are different ways to carry out ESO; however, the principle remains allowing eminent employees to buy a certain amount of the company’s shares with preferential prices This method proves to be appealing thanks to the interest it brings to workers, which sometimes can be much more than the annual base salary Employee stock option not only applies to old workers but also new workers, expecially executives, depending on task fulfillment This policy allows employees to share successes with the company, correlating with their own contributions The greater the contribution, the longer the time they work for the 10 company, the greater the profits The application of ESO also speaks about the company’s philosoly: Share successes with contributors Therefore, this policy significantly appeals to employees, thereby attracting and retaining talented workers 11 ... types of bonus such as work efficiency bonus, new customer bonus, sales percentage bonus, etc  Regulate the amount of preferred shares to be issued and shares reward for excellent employees... then forwarded to Human Resource Department # Determining quarterly efficiency-based salary (SEQj) After determining quarterly efficiency-based fund for each department, we can pay each employee... talented employees There are different ways to carry out ESO; however, the principle remains allowing eminent employees to buy a certain amount of the company’s shares with preferential prices This