Introduction to the Management of Organisations

Stephenson Electrical is a medium-sized electrical manufacturing company. They employ approximately forty members of staff. About twenty-five members of staff work in the factory on a variety of production related activities. These range from machining and manufacture of parts, to packaging and quality assurance. There are also a number of members of staff who are primarily employed in administrative roles ranging from marketing manager, finance and administrative positions and support duties. These roles are primarily desk-bound jobs. There are four travelling sales staff. The chief executive, Kevin Stephenson, is also the owner of the business. His father, George, started the business some 50 years ago and through his hard work and dedication he grew the business to its present size. Kevin’s wife, Jennifer Stephenson, is the financial controller. The daughter of the chief executive, Sarah, is assistant to the marketing director. The marketing department also employs an advertising and website officer. There are two other members of staff working in the finance department, one is a wage clerk, the other deals with the purchase and sales ledgers. There are two drivers who take care of deliveries. The company also employs a cleaner, who is part-time and a receptionist, Debbie, who greets visitors, answers the phone and acts as Kevin’s personal assistant. Kevin has been concerned recently that morale in the business has been to flagging. The staff do not seem to be as motivated as before. Absenteeism, and lateness has increased and many staff in the factory are refusing to work the new flexible working hours that Kevin wants to introduce into the factory to make it more efficient and save money. There are mumblings and rumours that more redundancies might be in the air. It is true that the business has suffered from the downturn in the world economy, and sales are dropping and profitability has been affected. The business has had to tighten its belt and Kevin’s wife, Jennifer, has introduced a series of cost-cutting measures into the business that have not been popular with many members of staff. About a year ago, as part of a move to increase the efficiency of the factory, the company bought a new machine that does the work of up to ten members of staff. Soon after the introduction of the machine, five of the factory workers were made redundant. You have been asked by the CEO to put together a report outlining how he could improve morale in the company. Outline in your report some practical measures that you think might improve motivation and morale in the company. Base your analysis and recommendations on the theoretical concepts that may be relevant to Stephenson Electrical. Although, ostensibly, a business report you should include a reference section/bibliography as part of your report, which will not be included in the word count.