Employee Payment
Question:
Discuss about the Sustainable Business Practices and Strategies.
KIA Motors is the second largest manufacturer of automobiles in South Korea and has an annual sales figure of nearly 3.3 million cars. The shareholders of the company along with the employees of the organization participates in the decision making process of the company which helps them to achieve success in the market (Bendle et al. 2016). However like most of the companies KIA Motors also faces a number of adversities that affect the operational performance or tends to decrease their performance over the time-being. In this following report a number of recommendations have been provided to help the company overcome the issues and increase their percentage of success.
The first and foremost issue is the inconsistent and abrupt payment of wages to the employees by the management of the organization. The low payment of wages does not help the cause of the employees and makes them de-motivated. The management of the organization has also failed to formulate a proper reward system for the employees. Reward system helps the employees to be recognized and makes them more dedicated towards their work. This is in sharp contrast to the policy followed in Trader Joe’s which is one of the largest supermarkets of USA. Their main policy is to make sure that the employees are paid much more than their expectations from other rivals in the market (Giles, 2014). The employees are given the most importance in every regards and the company also has a policy that allows 15.4% of their pay to their retirement funds. KIA Motors can take a leaf out of the following policy and encompass such similar policies in their organizational framework.
In sharp contrast to the supplier management policy of KIA Motors, Trader Joe’s follows a proper supplier management policy that helps the company to have a proper relationship with the suppliers. This helps them to control the prices of the raw materials and decrease the operating cost of the company. The following policy thus needs to be implemented by the management of KIA Motors to make the organization more profitable.
Trader Joe’s has a successful marketing plan in place that has been able to provide huge success to the organization (Giles, 2014). The flyer program of the organization and its reach in far off places has helped it to promote itself in a much better way. KIA Motors have failed in this particular area and thus it needs to implement a similar program to be able to create a stronghold in the market.
SMART Framework is the acronym for Specific, Measureable, Attainable, Relevant and Time Based Goals and objectives taken up by any person or an organization. The recommendations provided in the introductory part of the project can be well measured by the SMART Framework.
- Specific- The issues identified are surely specific as they does not tend to deviate from the main issue and describe the actual set of problems that are generally faced by the organization (Dasgupta& Hart, 2015). The wage problem of the employees is one of the main issues and directly shows the condition of the employees in KIA Motors. The identification of such issues is very much important for the management to operate the business smoothly.
- Measureable-The issues are obviously measurable as problems can be identified and measured according to their importance. The problems with wages, supplier problems, lack of proper policies and most importantly the flyer management policy can be measured to determine the difference of the company with that of the other organizations especially with that of Trader Joe’s.
- Attainable-The recommendations that are provided in the following assignment are obviously attainable. The management of KIA Motors needs to change their policies and must make an immediate amendment to the wages of the employees to bring it at par with the industry standards. The company being the second largest automobile manufacturer of South Korea will have no such problems in increasing the wage given a wise implementation of the policy with a minimum effect on the operational cost.
- Relevant- The relevance of the recommendations cannot be neglected as the modern market demands innovation and dynamic policies like the one’s implemented by organization like Trader Joe’s to attain success. The reward system, wage increments, efficient management policies are all relevant to the organization and must be implemented in a proper way (Bocken et al. 2014).
- Time Based-Time management is a must for the organization as the policies needs to be implemented in the correct time to gain success. Implementation of the policies accordingly is the key to success for KIA Motors.
Measurement or metrics is one of the most important tasks of the management as such a measurement helps the organization to get a clear idea on the actual progress of the organization after implementing the recommendations. Two of the main metrics that needs to be implemented includes;
- Salary Structures- The management of KIA motors can take a leaf out of the success story of Trader Joe’s and implement a proper wage structure for all the employees of the organization. The wage structure of the company must be unbiased and according to the marketing standards. The wage structure of the employees must be formulated by the management of the company after consulting with the employees and carrying out a thorough market research on the wage structure of different companies. The company must design the structure in such a way that will offer much more benefits than other organizations. The company must also conduct a regular review of the employees and offer reward and recognition to the best amongst them.
- New Sessions with Employees- The management of the company must conduct new sessions for the employees to make them accustomed to different CRM policies and also train them the necessary skills that are needed to manage the organization.
- Marketing Management- The absence of a proper marketing management has been the weakness for KIA Motors for a long time. It is important to hire able and skilled managers and supervisors to take care of the marketing needs of the organization.
- The proposed metrics must be changed from time to time according to the changes in the market. The change in the proposed metrics accordingly will help the organization to sustain in the market.
Supplier Management Policy
The metrics must be identified and measured in a proper and efficient way as it is directly related to the success of the business organization. The data that will be needed for such a measurement must be collected from reliable and proved sources. This includes the records of the customer feedbacks and the employee grievance cell records (Giles, 2014). Apart from this the management can also collect necessary information from the resume as well as the academicals and practical qualification of the organization. The qualification records of the employee help the management to get an idea of the skills and capabilities of the employee. The data identified by the organization must be genuine as fake and inappropriate information will lead to the failure of the marketing plan of the organization (Wolfe, 2011).
Proper and efficient data is utmost important to the success of the business and thus the help of a number of different processes including quantitative and qualitative must be taken to gather information. In the present times the company management fails to collect data from authentic sources. It is needed to collect the authentic data to analyze the actual results. The quantitative data will be collected from a number of different survey findings which will be conducted by an independent organization appointed by the management of KIA Motors. On the other hand the thematic analysis will be completed after the completion of the secondary data analysis. The analysis of the secondary information will be done after analyzing some case studies and journals related to the same. The secondary as well as the primary data are important sources to properly conduct a research on curving out marketing strategies for the organization. The proper combination of both the analysis helped to complete the process of data collection.
Some of the potential challenges that will be faced by the organization during the implementation of the following marketing metrics are as follows;
- The management of KIA Motors has not been able to establish itself with a strong brand name and thus it lacks the proper management policies. As mentioned in the metrics there must be a strong centralized managerial structure. The strong centralized managerial structure will transform the total structure of the company including the lower level of management and thus even the management of the showrooms will have transparency and excellent feedbacks (Joyce &Paquin, 2016)
- The absence of a proper branding policy will hurt the company to fix its management policies. There are no such training programs in place for the employees of the organization. Training programs for both the newcomers and on job trainings will be hard to implement as establishment of such programs will involve an increase in the operational cost of the organization which in turn will force the management to increase the price of the cars. According to, Ortiz?de?Mandojana& Bansal (2016) this may lead to a fall in the sales figures of the company. The company is already struggling to meet the target of the sales figures and any such policies will adversely affect them.
- Absence of multicultural dimensions in the organization may create problems during international expansion of the business. The presence of employees from different cultural backgrounds may lead to problematic situations in the workplace.
References
Bendle, T. F., Farris, P., Pfeiffer, P., &Reibstein, D. (2016). Marketing metrics.
Bocken, N. M., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes. Journal of cleaner production, 65, 42-56.
Dasgupta, P., & Hart, S. L. (2015). Creating an innovation ecosystem for inclusive and sustainable business. Base of the Pyramid 3.0: Sustainable Development through Innovation and Entrepreneurship, 96.
Ferguson, M. E., & Souza, G. C. (Eds.). (2016). Closed-loop supply chains: new developments to improve the sustainability of business practices. CRC Press.
Ferguson, M. E., & Souza, G. C. (Eds.). (2016). Closed-loop supply chains: new developments to improve the sustainability of business practices. CRC Press.
Giles, D. B. (2014). The Anatomy of a DumpsterAbject Capital and the Looking Glass of Value. Social text, 32(1 (118)), 93-113.
Joyce, A., &Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Ortiz?de?Mandojana, N., & Bansal, P. (2016). The long?term benefits of organizational resilience through sustainable business practices. Strategic Management Journal, 37(8), 1615-1631.
Padin, C., Ferro, C., Wagner, B., Valera, J. C. S., Høgevold, N. M., &Svensson, G. (2016). Validating a triple bottom line construct and reasons for implementing sustainable business practices in companies and their business networks. Corporate Governance: The International Journal of Business in Society, 16(5), 849-865.
Sheth, J. N., &Sisodia, R. S. (2015). Does marketing need reform?: Fresh perspectives on the future. Routledge.
Singla, A., Ahuja, I. P. S., &Sethi, A. P. S. (2017). The effects of demand pull strategies on sustainable development in manufacturing industries. International Journal of Innovations in Engineering and Technology, 8(2), 27-34.
Wolfe, N. (2011). The Living Organization: Transforming Business to Create Extraordinary Results. Encounter. Quantum Leaders Publishing.
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