Slide 1: Title Slide + Company Background
Ban introduces everybody)
Today our group Hamza, Lester, Matt, Ben and me will do a presentation about DFS’s performance management. Now let Ben introduce about the DFS Company. As a business DFS is in relatively good shape as it is a rapidly growing business, and is by far the largest food supply and distribution company in the North East. However due to the rate of growth, and the competitive environment changes, DFS need to ensure that they are being pro-active in their approach to both external and internal elements of their business such as HR, Supply Chain Management, Accounting and Marketing. Ben mentions speadsheet
Slide 2: HRM
Firstly in regards to the current wage system, the wage bill is far too high this partly due to the current HR structure within the organisation, and a high level of expectancy towards a 5% annual increase amongst the staff. Though levels of inflation and competitiveness have caused wages to rise the lack of reasoning on why senior members are awarded such high bonuses has not been addressed. The second point addresses how the system is clearly outdated and the company is paying far too much on its pay bill ,a drastic change is needed for the 10 % reduction to be achieved it is also worth taking into consideration that there will be a significant resistance amongst the stakeholders towards a proposed change signalled by the strong family atmosphere within the company. However further savings may also be made due to less staff needed in a new performance management system and the reorganisation of hierarchy within the company. Another major issue we have identified is in regards to the lack of strategic alignment with corporate objectives and an imbalance between the degree difficulty of a task and goal and the financial rewards received for obtaining them. Currently the company has low levels of both staff absenteeism and turnover this highlights the popularity of the current system amongst staff with operative jobs highly sought after. Slide 3; HRM continued (Potential problems and solutions)
How Successful the change occurs is dependent upon the culture and nature of the organisation and the understanding and willingness of stakeholders. This is a major factor in the reduction of wages from all levels of the company .For this to be implemented successfully, directors and managers must be seen to lead by example. The working environment within the company may change due to reluctance towards the new reward system. The company may suffer from productivity issues due to a change in the levels of absenteeism and turnover. We believe the co-directors will be willing to implement the change as a necessity for future success and share our long term overview whilst creating the new performance systems. They shall receive a 20% reduction in their bonuses from 50-30%. Manager’s wages shall also decrease within the new reward system the maximum wage shall decrease from £60,000 to £55,000. The minimum wage shall also decrease by £5,000 from £35,000 to £30,000. We have also reduced staff numbers from 50-40 by making 10 members of staff redundant, The operatives have also had a wage cut with an average reduction of 50 pence ensuring reductions are made at every level of organisational hierarchy. This will result in a 10% saving with a remaining £60,000. This will be spent on the development of staff and hopefully will act as a motivational factor within the workforce and increase productivity The lack of strategic alignment and organisation within the company is also concerning we have suggested implementing the basis from Antony`s triangle on defining goals from the directors and implementing them at managerial levels so they remained clarified to all employees. We also believe the 4 perspectives highlighted by Kaplan and Norton will be...