The Importance Of Human Capital Management In Boosting Productivity And Profitability

The economic value of human capital

Human capital refers to the economic value of an employee’s skills, experience, and talents in an organizational setting. Di Fabio and Peiró (2018) argue that human capital is a valuable intangible asset to be protected. Human capital helps to ensure that production and productivity are as efficient and effective as possible. As a result, a company should invest in training and motivation for its personnel to boost profitability. The human resource department of a firm is in charge of managing all levels of human capital. Poor human capital management leads to lower productivity, lower quality, and higher staff turnover rates, as stated by Boon et al. (2018). The current human capital situation of Art’s Food Company is dismal. Human capital management is lacking at the company, and people are not valued as assets. Roger, the company’s creator, is overheard saying things that imply he has no regard for his employees but expects them to produce good results for the sake of his company. When asked about employee motivation, Roger argues that employees should come when they are inspired at home, and that inspiring employee is the company’s responsibility. He is completely unaware that the work atmosphere he is cultivating has negative consequences for the organization. The impacts may not be felt right now, but they will be felt later. As a result, Art’s Food Company’s current human capital condition is undesirable, particularly in the educational sector.

Since the bad working environment, the Educational Area’s personnel has decided to leave the company. Employees are largely dissatisfied. There are no indicators of action to address their issue based on the senior leadership’s response. Raquel Torra, the head of the educational area, is a proactive and active woman with more than ten years of expertise. She is a well-liked leader by her subordinates because she understands their problems, even though she cannot fix them due to directives from her superiors. Roger Art, the company’s founder, and Joseph Font, the Chief of Operations, are among her superiors who make up the executive leadership. They are authoritative leaders who are unconcerned about their employees’ situation and only care about getting the job done. Employees are dissatisfied with their jobs and disengaged, both necessary for increased productivity(Sun & Bunchapattanasakda, 2019). Lorena, for example, has been an assistant to Raquel at the firm for three years. She is a self-assured and upbeat individual who is always willing to assist a coworker in need and consistently meets or exceeds the expected objectives. However, she believes that the management does not value or recognize her, which harms her motivation and performance as an employee. The educational staff is in a situation that the executive leadership must address immediately, or else all educational personnel will be laid off.

This point has been reached due to weak executive leadership and communication with lower-level employees. Joseph and Roger are in charge of the company’s operations, but they have neglected to consider and improve the working environment for their employees. They lead in an authoritative leadership, ignoring the well-being of their employees and concentrating solely on the company’s goals. Authoritarian leadership controls the organization’s main choices with little or no involvement from members, as Zabolotniaia, Cheng & Dacko-Pikiewicz (2019) stated. The education department’s workforce has lost motivation to complete their tasks due to this leadership. In this situation, the executives exhibit a lack of interest in the employees, implying that they are unimportant and should seek morale at home rather than at work. Lack of feedback is another consequence of this leadership style(Lee, Idris & Tuckey, 2019). Customers who provide feedback on the company’s services and products are in close touch with this area’s workers, particularly salespeople. However, because there are no channels for providing client feedback to the company’s management, this information will remain with the salespeople. As a result, client discontent and customer loss will result in the long term.

Negative consequences of poor human capital management

Area directors have total responsibility for communicating the executive’s choices. When they quietly contact directly with the employees, there are no incidents, but when they do, they approach the employees in a hostile and scorching manner. As a result, they treat their employees with contempt and disregard. Rogers, the founder, is more concerned with achieving strong economic results than with the welfare of his employees. Since the employees lack a platform to air their issues, the firm’s lack of adequate and direct communication has led to this predicament.

The majority of staff will resign unless the corporation addresses the existing situation. Raquel, for example, is the educational area’s director and has worked in both the commercial and operational sectors. As a result, she’s critical to the company’s productivity. She also has good communication skills and can lead, which helps soften the hostile climate; nevertheless, she is unsure how long this will persist, and she may have to retire.

Workers are weary due to the terrible working environment and additional 10 hours of overtime. Assume no steps are taken to remedy the situation. In that circumstance, employees are more prone to make several errors while performing their duties, lowering the quality of their products and services and affecting the company’s reputation(Al-dalahmeh, Khalaf & Obeidat, 2018). As a result, because Roger is interested in maximizing profits, he should look for measures to ensure that his employees do not make mistakes. The crisis at the company can be rapidly resolved by valuing people and attending to their needs. It will encourage them to work harder, resulting in increased corporate production.

The corporation has identified some business needs and others that it has yet to identify. The situation in the company needs workers’ motivation. To keep employees motivated, the organization should concentrate on meeting their needs. When it comes to motivating employees, a leader should assess their level of need. Mitchell and Jin (2020) state that an individual will only be motivated by a reward proportional to their level of need. A car, for example, cannot encourage an individual employee if their psychological needs have not been met. In the same way, an employee cannot be motivated by being provided with a shelter for shelter when they already have a house and need a car; the reverse is also true. As a result, before developing incentive strategies, the company should first determine the needs of its employees.

Abraham Maslow’s Hierarchy of Wants specifies five different sorts of needs. Figure 1 shows the five types in five levels(Hopper, 2020). The basic or psychological needs, such as food, clothing, and shelter, are the first degree of need. These are the necessities of life for humans. Most people labour to make a living and meet their fundamental needs. Safety and security needs are the second levels of needs. It is a level of need at which a person wishes to control their lives in terms of financial stability, health, and wellness and can pay for health insurance. Individuals in this level of need seek a security guarantee for their job position, which encourages them to ensure their performance aligns with the company’s goals(Navy, 2020). Maslow defines social needs as things like acceptance, affection, and a sense of belonging. They are needs that help people avoid problems like depression and loneliness.

The current situation at Art’s Food Company

The fourth level is the need for self-esteem. They are needs that should be treated with respect and gratitude, and self-esteem becomes a powerful motivator when a person’s basic needs are met. People want their efforts to be recognized and rewarded(Altymurat, Muhai & Saparow, 2021). Lorena, Raquel’s helper, is an example of someone who is in this level of need. Regardless of her importance to the organization, she is undervalued by the management. As a result, all the firm has to do to motivate her is recognize and reward her work. According to Maslow, the last stage of needs is self-actualization, in which people are focused on their personal development rather than other people’s opinions(Winston, 2018). For example, Rogers’ company has reached this level because he is unconcerned about what his employees are going through and instead focuses on his company’s financial success, which contributes to his personal growth.

The organization has talented and agreeable employees, and the only challenge now is motivating them. It can achieve motivation by rewarding employees for the extra hours they work and improving the working environment by establishing direct and calm contact lines between employees and executive leadership.

 

Figure 1: Abraham Maslow’s Hierarchy of Needs

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Working together to achieve a common goal is referred to as the stages of evolution in work teams. According to Bruce Tuckman, to become high-performing, work teams must go through five stages. Forming is the first stage; storming is the second, followed by norming; performing is the fourth, and adjourning is the fifth stage(Super, 2020). Figure 2 depicts the various stages.

It is the beginning stage of the orientation period and the process of becoming acquainted. A lot of uncertainty marks the stage, and team members look for authority and leadership. A knowledgeable person may be chosen to take command. According to Capdevila et al. (2019), the team members ask themselves questions like, “What am I expected to do?” What does the team have to offer me? Do I have a place in this group? During this stage, the members have social interactions to get to know one another.

It is a crucial stage for the teams since it involves competitiveness and conflict as the members’ personalities emerge. Because they spend most of their time on unworthy activities that do not contribute to the team’s goal, team performance suffers. This stage is marked by conflicts about team goals and establishing subgroups for strong personalities. Members are encouraged to work through these obstacles by accepting individual differences and working through opposing concerns to stay focused on the team’s mission(Pfutzenreuter, Lima & Frega, 2020). If they cannot resolve these issues, they will drag them out for an extended period, affecting their performance.

This stage involves reaching a consensus on who will be the leaders and what each member’s unique function will be. It is a stage in which individual differences are resolved, and unity and cohesion among the members emerge. As members learn about cooperation and have a shared goal in mind to fulfil the team’s goals, team performance improves(Super, 2020). If there are any disagreements, the squad will be forced to return to the storming stage.

The impact of leadership styles on employee motivation and productivity

As the name implies, the team has a high level of performance due to well-established cooperation and consensus. In addition, the team is now mature, well-functioning, and well-organized. The teams are laser-focused on their mission Super, 2020). They know how to deal with problems to keep everyone on track.

Accomplished team goals define the stage. The main responsibilities here are to finish the assignment and document the findings. Some team players have been reassigned to other teams. According to Tripathi (2018), the team’s accomplishment is celebrated with a ceremonial work acknowledgment. The team members are replaced with other members when the team is a committee with other responsibilities, and the team begins the development stages again.

The company’s Educational Area is in the norming stage. There are no disagreements among the members of the company’s crew. Each team member can compensate for individual disparities in qualities and behaviours. The educational staff has a high degree of cooperation and good performance, despite believing the corporation does not acknowledge or value them. The team, however, is unable to get to the performing stage and hence must remain in this stage for an extended period. The squad members lack the necessary support and motivation to advance to the next stage.

Figure 2 Team Development Stage

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An organization forms teams and departments to meet its business demands as long as it operates. Employee-created teams are more informal than those formed by the organization.

A formal team is a collection of people who come together to work toward the same purpose or objective, and each group member has a defined role and structure(Galloway & Ishimaru, 2020). Members must follow the group guidelines to achieve effective cooperation. Educational Area, Hotel Area, and Events Area are the three formal teams at Art’s Food Company. They are formal teams because the company’s management formed them to meet its overall economic objectives. Even though the executive leadership makes choices for these teams, the three formal groupings operate as independent departments with their directors. There is a formal team of 19 individuals working in the Educational division. The team’s unifying purpose is to provide the executive leadership with efficient and effective services. The team’s director receives formal contact from the firm’s upper management. Since corporate management establishes interpersonal relationships during team formation, there are none in a formal team.

According to Gaikwad (2019), an informal team is a group of two or more people who come together to do a task independently. To meet psychological and personal needs, an informal team is formed. They are not formed by firm management, and in many situations, the company is unaware of their existence. A nice example of an informal team at Art’s Food Company is the group area coordinators. Since they are all responsible for outdoor operations, the team is self-managed and formed to make their tasks easier. Six team members report to the department director in the field of education. As they share a workspace, the group tends to form interpersonal bonds. Lorena, the assistant of the educational area director, is in charge of a recently formed informal team. Because they get along well, Lorena has a solid and competent group with her director, Elisabeth, Anabel, Enrique, and Julia. They have similar opinions on senior management and propose comparable solutions if no action is taken to improve their situation. The members of an informal group share common aims, which bind them together.

The need to value people and attend to their needs

As stated by Belbin, the team will be uneven; everyone has the same position and acts in the same way. Instead of cooperating, the team will compete. As a result, mixed-role and mixed-behaviour teams perform better. Based on his study, Belbin grouped nine-team positions into three broad types (Bednár & Ljudvigová, 2020). The roles are action-oriented, people-oriented, and third-thought-oriented.

The job of a shaper, where team members consistently challenge the team to keep growing, is one of the three roles under Action-Oriented. The second function is the implementer, who makes sure that the ideas are put into action. The third job is that of a full finisher, which ensures that the allocated group duties are completed promptly.

The coordinator function, in which a team member assumes the role of chairperson, falls under the second group of People-Oriented roles. The second job is a team worker, who always encourages team members to cooperate. The third job in this group is resource investigator, whose members are always on the lookout for outside opportunities that will benefit the organization (Mahesar & Mangrio, 2018).

The third group is the thought-oriented position, which differs from the first in that the team member proposes fresh approaches and ideas to help the team achieve its goal. The monitor-evaluator function is the second, in which a team member analyses the available possibilities. The third function is that of a specialist, in which a team member contributes specific talents to the team to complete team tasks in a practical manner(Ellis, 2020).

 

Figure 3 Belbin’s Team Roles

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It’s simple to group the roles of each worker in the educational field once you understand Belbin’s role classification. Table 1 summarizes the various roles. According to Belbin’s role classification, Raquel Torra’s team role is the coordinator. Coordinators provide chairpersons. Raquel Torra is the director of the company’s Education Department and, as such, the educational team’s chairperson. Lorena serves as Raquel Torra’s assistant. She is an action-oriented function as an implementer since she ensures that things in the education department are completed. Joan manages the department’s tenders and serves as a sharper, a function that falls under the action-oriented category and consistently pushes the team to develop.

According to Belbin, resource investigators are salespeople who negotiate for resources on behalf of others. Enrique is a resource investigator. He is not happy with the working climate in the Education team. In her function as an administrative assistant, Julia serves as a monitor-evaluator, assessing the ideas of other members. Anabel is a product technician who serves as a full finisher, ensuring that the team’s tasks are performed to the highest standard. Elisabeth is a team player who assists others in collaborating. She is a supervisor in the educational department, and she is in charge of the employees’ schedules.

Worker’s Name	Role
Raquel Torra	Co-coordinator
Lorena	Implementer
Joan	Sharper
Enrique	Resource Investigator
Julia	Monitor-Evaluator
Anabel	Complete Finisher
Elisabeth	Team-worker

Table 1: Education Area worker’s role

Power is a broad term used in various professions, and each one has its definition. Power is difficult to define since it can be perceived in various ways. Power originates from a position of authority or executive in a company or organization, and it can have a bad or beneficial impact on others(van Dijke, 2020). Leaders or managers in a company assume different sorts of power. There are five main sorts of power(Hartner-Tiefenthaler 2021). The first is coercive power, which threatens juniors to get them to do what they want. Employees of a company are threatened with termination and demotion. The second type of influence is reward power, in which the leader uses incentives such as training, bonuses, and benefits to sway others. Because decisions are based on these rewards, it is a weak power. The third type of power is legitimate power, which comes from a high-ranking authority. The fourth type of power is expert power, which starts with a person’s knowledge and abilities(Edmonds, 2021). Referent power, which is common among celebrities and movie stars due to their large followings, is the fifth sort of power.

Motivating employees through meeting their needs

Roger Art wields coercive power, one of the five types of power. As shown in the case study, Rogers has a habit of pressuring staff to complete their jobs. He believes that as long as they are paid, they should work and do not mind working an extra 10 hours per week. He also used coercion by refusing to provide motivational incentives to the workers and insisting they come motivated from their homes. Employees here make sure they fulfil their given goals out of fear of losing their jobs or compensation.

Roger is the company’s founder and is in charge of the executive leadership. He executes some management responsibilities but lacks in others, and to comprehend this, one must know the organization’s major managerial functions. Several scholars have defined management functions, including Henry Fayol, George and Jerry, and Koontz and O’Donnell. Koontz and O’Donnell identify the widely accepted management functions, including planning, organizing, staffing, directing, and controlling(Shinde, 2018).

Planning entails deciding what to do, when to do it, and how. It serves as a link between where we are now and where we want to go as a company. Planning is critical because it ensures that available resources are used to their full potential to accomplish the desired outcome(Shinde, 2018). Rogers is lacking in this area of management. Rogers is just concerned with the result and has not developed plans on what to do and how.

Organizing entails bringing together the organization’s people and financial and physical resources to achieve the desired outcomes. It comprises delegating authority, giving responsibilities, and identifying actions(P??ek, Ochrana & Pla?ek, 2021). Rogers is effective in this role because he has delegated some of his responsibilities to Raquel, the educational area’s director. As the company’s creator, Rogers has recognized and classified the tasks required to meet the company’s objectives. Joan and Enrique, for example, have been tasked with receiving tenders and ensuring that they are delivered to the appropriate schools. Elisabeth is an administrative assistant responsible for keeping track of the company’s growth.

Regarding skills and knowledge, staffing duties entail matching the right person to the right job. It is a function that deals with the hiring, evaluation, training, advancement, and remuneration of employees. Rogers tends to just participate in the selection process in this role, leaving the employees to work and achieve the given objectives. Rogers fails to offer new and ongoing staff adequate training. He is likewise unconcerned with the staff’s salary to motivate them. Rogers does not promote his employees, regardless of how long they have worked for the company or how well they have performed.

Directing entails persuading, mentoring, overseeing, and encouraging subordinates to fulfil corporate goals effectively and efficiently. Supervision, motivation, communication, and leadership are all parts of directing as a managerial function(P??ek, Ochrana & Pla?ek, 2021). Rogers is lacking in this area. Rogers has no direct contact with subordinates who are directly involved in activities critical to the company’s production. When he communicates directly, he does so in a severe manner. He also has little chance of coaching or overseeing the workers, but he wants all work to be completed. As a result, he falls short of his directing role as a company manager.

Identifying the business needs and developing incentive strategies

Controlling entails comparing the achieved goals to the set objectives and the company’s standards. It’s a feature that ensures that each plan is carried out according to the criteria. Rogers is meticulous in his execution of this management job. If the workers fail to deliver the positive economic outcomes he expects, they risk being dismissed or having their wages put on hold.

As a result, Rogers’ management functions are limited to controlling and organizing, and he cannot direct, staff, and plan.

To comprehend the team members and their sources of motivation, a leader should have a high capacity for emotional intelligence(Nguyen et al., 2019). They should take pride in their work to motivate their fans. To become a complete leader, Rogers needs to work on several parts of his leadership, such as the working environment and his relationship with his staff. First, as a leader, he should make himself physically available to his staff so that they may openly ask questions and understand their needs. Rogers needs to stay focused on the team and remain dedicated to it. Since the organization has project teams, a facilitator rather than a leader should be assigned to them.

He should be the first to establish a collaborative environment as the company’s management. Growth in project teams necessitates good communication between team members and leaders(Kumari & Majumder, 2021). It emphasizes the importance of each team member’s knowledge, skills, and talents as a collective force, rather than simply calling individuals a team. A successful team has three key features; each team member has a distinct function to play. A team has a common set of tasks, goals, and objectives. Third, the actions of team members must be coordinated and interconnected.

Rogers’s communication skills might be improved in various ways, but the best method would be to enrol him in a short course at a management school. The management course will teach him how to craft a message that will appeal to his target audience, which in this case, is all of his company’s employees(Maynard et al., 2021). He’ll also learn how to enhance his body language, a nonverbal communication method that conveys more information than words.

Rogers must first acknowledge his employees as valuable assets to the company to motivate them. He will be able to comprehend what they are going through and what needs to be done to make them feel at ease. For any extra time that the staff works, she should pay them an additional amount in addition to their income. He should value individual and group contributions and accomplishments. This will assist to foster healthy competition among project teams, with each team striving to be the best to receive a prize(Grohman & Snyder, 2021). As a result, team members will use their skills and abilities to help their team win. The company’s success is dependent on the project team’s success.

When performing management tasks inside an organization, a leader’s leadership style refers to the behaviours they exhibit. Rogers is an expert in the field. The leader makes decisions for the organization without consulting the subordinates in authoritarian leadership(Wang & Guan, 2018). Such a leader has complete authority, power, control, and legal authority to decide an organization’s objectives. They have doubts about their subordinates’ decision-making abilities and have them report to them. Rogers needs to adopt a democratic leadership style instead of his current one. Rogers will allow the organization’s people to take part in the decision-making with this approach. However, the leader retains the last decision in every given decision(Crosby, 2021). It’s a leadership style that fosters creativity and has its approach to problem-solving inside the team. It promotes team members’ autonomy. According to Devi & Subiyantoro (2021), this style will result in high levels of staff engagement and involvement, resulting in increased individual performance and, as a result, improved overall corporate production. A democratic leader makes followers feel that they are an important part of the organization, which increases team members’ dedication to the ultimate aim. As a result, Rogers’ shift from authoritarian to democratic leadership will benefit the organization.

By sharing important information and giving employees more influence over issues influencing their work performance, empowerment gives employees more autonomy(Qing et al., 2020). It’s a method for removing factors that make people feel weak, resulting in increased worker self-efficacy. When a company considers empowerment, three things must be considered: leadership, labour, and learning. Employee work satisfaction is the primary goal of an empowerment plan.

Employees who are empowered in the workplace feel respected and are a valuable component of project teams. It improves the organization’s ability to respond to employee-related issues. Employee accountability is improved by empowerment(Harcourt & Ateke, 2018). When a company trusts an employee, it gives them the authority to make decisions and handle problems with sound judgement. Because they know their managers trust them, the employee takes responsibility for their actions.

When an employee is empowered, they can solve problems more quickly in a group. When dealing with organizational challenges, it can be aggravating to refer a person to various levels of authority to fix a problem(Huo & Boxall, 2018). On the other hand, assume that an employee is enabled and given the authority and resources to complete tasks without completing all of the authorizations. Issues are resolved faster in this instance, and the remaining time is spent on useful business operations.

High-quality client services are ensured by empowerment(Auh et al., 2019). For example, in the case of Art’s Food Company, customer service will increase if staff are empowered, particularly those who deal with tender processing and delivery. In this situation, the employee will be able to negotiate with the consumer without consulting Rogers about a price. Job empowerment allows employees to take on specific tasks and deliver customer care solutions, resulting in a happy client base and better customer service.

Rogers is on track to meet several objectives due to a work plan. Enhancing employee commitment is the major goal. The distribution of power between management and employees is an important goal of empowerment, as it increases employee commitment. When employees have and perceive the ability to handle specific situations and occurrences, they feel empowered and recognized (Potnuru, Sahoo & Sharma, 2018). The employee acquires a great deal of confidence in their ability to execute a task and takes part in decision-making. Employee empowerment enables them to participate at all levels of the organization, from the top down to the shop floor. Employee communication and cooperation improve, and a team-oriented environment is created due to such participation. After that, the work teams can function as self-contained units to complete their tasks.

As stated by Yin, Wang & Lu (2019), empowerment and delayering can be used to foster a sense of commitment among workers. According to AlKahtani et al. (2021), empowering team leaders by allowing them to coach and enlighten team members and leading by example demonstrates that the company values the team’s efforts and supports participatory decision-making in the workplace. As a result, there will be a high degree of job commitment and happiness, stimulating creativity and innovation within the company.

Inspiration is a leading sign of outbound efforts that increase productivity and improve customer experiences in a corporate setting. The amount of employee engagement in a firm, in most situations, reflects the inspiration. There are two different sorts of inspiration: active and passive(Osterwalder et al., 2020). Attending seminars and watching staff empowerment videos can provide a leader with passive inspiration. On the other hand, active inspiration entails making new things and putting new ideas to use to achieve the desired results. Inspiration might originate from the outside world, within an organization, or above the top(Edmondson, 2018). Rogers should use an active inspiration strategy within the Arts Food Company. The company’s project teams will be the source of inspiration in this situation.

The focus of the inspiration will be on project teams as the primary vehicle for employee development and company growth(Zhou et al., 2018). The team’s distinct characteristics will create an ideal atmosphere to implement the empowerment plan, which will increase employee engagement and involvement in the organization. A motivated, mature, and successful team instils confidence in its members, which serves as a source of motivation to keep working toward the team’s objectives. Members of such a team will always feel safe and inspired to innovate and develop new ideas to better the group’s performance(Clifton & Harter, 2019). Employees who participate in the team-based empowerment plan gain new skills and information every day, all for the firm’s benefit. As a result, they are well prepared to face new difficulties, which helps sustain their empowerment levels.

As the company’s founder, Roger will be able to achieve his long-term objectives if he draws inspiration from team empowerment. The rationale for this is that empowered team members improve individual performance, which leads to higher corporate productivity and consequently more profits. Employee empowerment as a group consumes less money and time than individual employee empowerment. As a result, Rogers’ choice of team inspiration will benefit the entire organization. The steps of team empowerment as a kind of inspiration are depicted in Figure 4 below, along with the outcomes.

 

Figure 5: Model of Teamwork empowerment

Source: Created by Author

Team empowerment isn’t as simple as telling them they can make their own decisions; Rogers needs to employ some strategies. He should go from being a supervisor to becoming a coach or facilitator(Matsuo, 2018). Rogers should provide training to his personnel to identify and implement solutions to specific problems. Employees committed and proactive in achieving the company’s goals should be recognized and rewarded.

Second, Rogers should distribute part of his power and duty to his staff to empower them. It entails delegating certain decision-making and problem-solving authority to employees without contacting Rogers, as long as they follow its norms(Coglianese, 2018). Employees in sales, for example, may be strained to provide incentives to loyal clients. In this scenario, Rogers should clarify what offers they should supply and which they should not and provide them with authority to choose which incentive to deliver to which consumer. Rogers is unlikely to be familiar with the company’s clients. Giving salespeople the authority to propose incentives to such consumers will boost customer retention. On the other hand, effective delegation requires open and honest communication between Rogers and his employees.

The third strategy is to instil confidence in staff and create realistic targets(Robinson, 2018). Rogers should communicate with his employees to demonstrate he trusts them. He should provide them with little monitoring to demonstrate that he is satisfied with their methods and that they will produce satisfactory outcomes without further supervision. Rogers may motivate his employees by holding staff meetings where they develop intelligent company goals together, ensuring that the goals are attainable within the time frame allotted. Rogers may also elect to reward the best team with bonuses based on their performance. Rogers will gain a considerable percentage of staff dedication and involvement due to this, resulting in enhanced production.

The first stage is to establish goals and objectives that must be met. Rogers will not lose focus if he has plans to focus. The inspiration must be chosen in the second phase. It is an important phase since it guarantees that team members are actively engaged to participate in the process, which will aid in accomplishing the established goals. The final step entails reaping the rewards of empowerment. Empowerment’s benefits are measured in terms of individual and team performance and the company’s total production in terms of quality and quantity. Action is the fourth step, which includes improving communication. The fifth phase entails a set of actions and approaches to be used in the workplace to empower employees.

According to Men & Yue (2019), organizational communication, diversity, habits, and culture all directly impact employee performance and a company’s overall performance. As a result, for good results, Arts Food Company should adopt good communication channels from the top leadership to the floor personnel. This will improve the management-employee interaction and transfer the relationship between the company and the outside market. Salespeople who have a good working connection with management are more likely to have a good working relationship with customers. Employees and customers will be able to stay with the company. As a result of the efficacy of these activities, the company’s performance and productivity will improve, and the established economic goals will be met.

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