Job satisfaction is highly relevant to this case and it is evident that job satisfaction is a clear issue with KTI. Upper management may not understand this, but job satisfaction is vital for a company to keep its best employees; pay and incentives can only go so far. Employees spend 40+ hours per week at their job and want to be employed where they feel generally happy. While job satisfaction may be measured trough “anonymous surveys”, it will be more accurately measured through observation in areas such as turnover rates, absenteeism, and job performance. Turnover rate is a great indicator of poor job satisfaction. Turnover is inevitable – employees will leave for personal reasons, higher pay at a new company, geographical moves, and retirement. However, if turnover rate is abnormally high, then it is safe to say job satisfaction needs improvement. With the data the company has collected, a direct correlation is seen between low job satisfaction and high intention to turnover. As mentioned above, absenteeism also indicates low job satisfaction. If a person is unhappy with his or her work, then there will be lack of personal drive to go to a job for which they have no passion for. A happy, satisfied employee will put time, care, and effort into their work. If job performance – specifically in areas measured in quality and quantity – is below company standards, low job satisfaction could be a factor. There are multiple issues within KTI that might be causing poor job satisfaction.
Currently, the sales department employees 50 salespeople, 12 of which are new hires to sell the attached storage unit. These 12 new hires have been given the opportunity to earn a 20% premium in their commission that the 38 tenured employees do not receive. While this is great news for the newly hires, the veterans of the company aren’t happy. It is insulting to be a long-time employee and watch a new hire receive a reward you have not been offered. KTI needs to start treating the employees better. KTI takes care of the upper management without putting much care into anything else.
Personal development is poor at the organization because only senior level managers are allowed opportunities to transfer. The lower level employees were not given the increase in salaries or opportunity to move in to a new location. This is a discriminatory personal development. Additionally, there are no opportunities for the unskilled workforce to improve their skills meaning that they will remain underpaid and with no opportunity for career progression in the organization. This is likely to cause a high level of dissatisfaction among the unskilled labor force. If an employee has no opportunity to develop, then he or she will find employment elsewhere.
KTI is also having an alignment issue. Typically, the company is known for having a very employee friendly culture. They offer several different compensation packages such as private pension plans, benefit, and retirement plans where they contribute 10% of employee’s gross pay go to the retirement plan yearly. Some of the packages are funded 100% by KTI and cost employees nothing. Part-time workers also have the opportunity to use these packages. The CEO has said “KTI is successful only because we have the most talented, well-trained, and rewarded employees in the industry.” They have been able to avoid unionization in the past due to how well they treat their employees.
They are now considering reducing human capital by 25% and in the past year talk of unionization has risen. They only offered certain employees the opportunity to move to Austin, while also giving them a raise and a stipend for the move. They hired an unqualified manager instead of trying to hire internally. In Austin, the Engineering and R&D sector is getting higher pay than the San Jose location. The company says that value their employees, but they are planning to lay off many employees and have not given their employees equal opportunities. They have allowed department heads to pick and choose who will move to Austin and get a raise.
Team management is becoming a crucial part of employee management (Edmondson, 2012). It not only makes tasks and problem solving easier, but also it affords employees an opportunity to learn from one another and create a bond that drives performance. As indicated from the data, team cohesion is high among all groups of employees except for the unskilled groups. However, the data indicates that teams are part of everyday leadership in the organization.
parts of long term success
One aspect of long term success is the knowledge behind performing organizational development is transferred to the organization.
A second aspect of long term success is the organization becomes a high involvement organization long term
We want them to be an innovative and successful company who’s profits have turned around and are prosperous