Main Problem: The company faced major losses due to strategic, structural, incentive system of the company and the communication gap among the staff and the management of the Gillette Metal Fabrication .
Work force is not working to full capacity .They were cheating the work hours and are often clocked by their friends.By being unproductive they are creating operational losses.
The piece rate calculation system is not fair. In this method the worker earned minimum wage of $26 though he did production less than $26.
No interaction between the management and the workers because the management is not aware about what is happening in the floor space.
Goldbricking is done by the workers to avoid the work.Gravy and stinker jobs so the workers are not learning anything new.There are no bonus for any new invention.
No proper training for the new employees and no proper challenges to the experienced staff.
Weak management who has no idea how to cut operational losses and make employees productive
Change the compensation system hourly compensation should be implemented when the employee is productive.
Floor shop management should be stricter for the employees who cheat the work hours.
Interaction between management and staff should be increased so that this interaction helps them to achieve the organizational goals.
New employees should be put under mentorship program so that he would learn the work culture and be productive.
Innovation should be encouraged by compensation and acknowledgement this makes the employees to come with new ideas to improve the operation.