Informal Report 05002400

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Introduction
The Roanoke branch of Phoenix Advertising has been one of the company’s most successful branches in previous years, handling the company’s largest accounts and maintaining a strong human resource pool. However, recent observable difficulties have brought the branches’ current human resource practices into question, as reports of key personnel leaving or threatening to leave their jobs, sharp declines in productivity, and loss of employee morale reach the company’s headquarters. Under my capacity as Vice President of Human Resources Management for Phoenix Adverting, I have conducted an investigation into the causes of difficulties in the Roanoke branch and have identified one critical problem as employees’ loss of morale regarding overtime work. In response to this, I have developed a proposal that will reorient employees’ perspectives regarding the company’s interests in their wellbeing, and bring back and strengthen their support for rendering overtime service to the company for the purpose of taking part in the company’s mission of promptly delivering quality output to its clients.

Background
My investigation of the Roanoke branch consisted of a 3-day observation of the branch’s operations, interviews with branch employees, and surveys administered to the branch’s clients. It was very alarming for me to find that only 5% of all employees in the branch are enthusiastic about working during overtime to meet client demands. Overtime work is essential in this industry, since the industry operates on a seasonal environment wherein it has to take full advantage of peak season boosts in orders available. This lack of employee morale particularly towards working overtime is therefore a serious problem that the executive team has to address. The repercussions of this situation enduring in the Roanoke branch are grave, and are not limited as an issue about the branch’s productivity alone. Rather, there is the risk of whatever is causing the problem at the Roanoke branch to spread across other branches, making employees lose interest in working overtime throughout the entire company. Thus, the causes of this problem should be identified and addressed. In my further investigation, I found out that there are two most reasonable causes for the problem. Firstly, surveys with employees show that 100% of all salaried employees are unaware of the stipulation in the company’s policies that overtime hours are uncompensated in an hourly wage capacity, and that in place of this lack of compensation, the branch manager must allocate paid time off (PTO) for salaried employees who are working overtime. In relation to this, another cause of the problem found is that the branch managers themselves have not been allocating PTO for the branch’s salaried employees in compensation of overtime work hours rendered. These two situations form the fundamental cause of the described problem that is being experienced by the branch. Without proper orientation regarding and correct implementation of overtime policies, it is the conjecture of my investigation that employees collectively believe that the company is taking advantage of them by virtually asking them to work overtime for free. This inference brings about 3 phases of action that are believed to be necessary in order to overcome the given problem.

• Phase 1: Orientation of salaried employees on their rights and responsibilities regarding overtime work • Phase 2: Briefing of branch managers on the execution of overtime policies for salaried employees • Phase 3: Re-evaluation of overtime hours rendered, salaried employees’ attitudes towards overtime, client satisfaction and employee-management rapport after two months

Proposal
The proposal forwarded in this correspondence to the executive team is the development of cultural change within the Roanoke branch through properly orienting salaried employees, correctly briefing managers, and accurately evaluating...
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