Table of Contents
Section 1 – Company Background2
Section 2 – Description of the Problems3
Section 3 – Analysis of the Problems4
3.1 Communication Issues4
3.2 Lack of Motivation6
Section 4 – Resolution8
4.1 Creating ‘Guanxi’8
4.2 Having an Upward and Downward Communication Flow9
4.3 Giving value to Intrinsic Rewards and Empowering Employees10
The purpose of this report is to discuss some issues organisations face. We analyse the problems Lock&Lock is experiencing with its employee turnover rate, and how communication, culture and motivation play a role.
The first part is a brief description about the company, and the underlying problems that exist in the accounting department. In the last section are some resolutions to improve the current situation. We discuss ways to provide motivation for employees, and reduce turnover from various theoretical models in organisational behaviour.
Section 1 – Company Background
Lock&Lock established in 1978, is a Korean based company with hundreds of subsidiaries and branches worldwide. Lock & Lock has 5024 employees including overseas employees and has 10 subsidiaries in China, Vietnam, Thailand, Indonesia, Japan, Cambodia, U.S., Germany, Italy and Hong Kong, respectively.
In recent years, it experienced rapid growth, and exports containers and kitchenware to over 100 countries all over the world. Its aim is to be a global No. 1 comprehensive kitchenware maker by 2020. The company exerts its best efforts to expand its main products from plastic airtight containers to comprehensive kitchenware. To be a global company producing various and functional kitchenware, Lock&Lock maintains its competitive edge in the field by manufacturing containers using environment-friendly materials considering the health of customers and environment. (from http://us.locknlock.com)
One of our group members, Tianrong Zhang, used to work for Lock&Lock as a finance manager in one of the retailer subsidiaries in China. The financial department takes orders from both head office in Korea and the general manager within the subsidiary. The framework of the subsidiary in China is presented in Diagram 1. There is a Korean assistant in each department as a translator who can promote the communication between Korean head office, Korean general manager and Chinese department managers.
Diagram 1 – Organisational Structure
However, there is a relatively high turnover rate existing in one of Chinese subsidiaries. It will definitely affect the growth and development of the company. This will be discussed in the following sections.
Section 2 – Description of the Problems
The company is experiencing a high turnover rate within the subsidiary due to several problems. In this report, we will focus on the following topics: communication, role conflict, and motivation to analyse the high turnover problem existing in Lock&Lock Company.
The Korean staffs who speak both in Korean, and Chinese act as the medium of communication between head office in Korea, and the Chinese subsidiaries. It is through them that information is relayed to the local managers. This is why the head office interacts with the Korean assistants more than they do with the local managers. But the Korean assistants seldom communicate with department managers in the subsidiary when they deliver orders from head office. They feel reluctant to give further explanations resulting in some confusion to occur during the process of sending messages to lower level staff. The Korean assistants do not give clear explanations when giving instructions and tasks. They even seem inpatient when the staffs seek more information and consult with them. Consequently, a sense of grievance spread and low morale occurred.
In addition, culture shock contributes to the high turnover rate. Korean staffs speak their own language in...