Productivity Decrease and How to Address It

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Table of Contents

Background
Proposal
Schedule
Staffing
Budget
Request for Authorization

The decrease in productivity is the problem, which any company challenges periodically during its activity. Originally, the reasons of such decline may be various. Still, the only common feature for all these cases is the strong necessity of solving the problem and finding the root in order to avoid the appearance of this problem in the future.

Background

The fact is that the productivity decline, if unsolved, may only aggravate. Anyway, it will not pass by itself. Moreover, the decline of the productivity level may be the origin of further problems, causing essential hazards and challenges for the company. It is often stated that business performance is one of the most significant parameters for any company. However, it is based on several lesser, however, not less important factors.

Thus, it is stated that the main reasons for the appeared complaints are the law morale, poor quality, and customer complaints. Originally, this was the cycled problem, as complaints cause the decrease in satisfaction, the lack of satisfaction of work cause poor quality and low morale, low morale causes productivity decline, and the decline is the common reason for customer dissatisfaction. Thus, in order to satisfy customers, it will be necessary to keep workers satisfied, motivated, and encouraged for the improvement of the performance.

Proposal

Taking into account the necessity to solve the problem, which has a deep root, it is necessary to mention that the solution should be started from the reason, but not from the consequences. It is stated in the problem formulation that numerous workers had to work overtime for several days without any compensation. On the one hand, it signifies the responsibility of the workers and clear awareness that the tasks should be completed.

On the other hand, working overtime without compensation discourages the workers essentially. It is necessary to mention that there is the only way of solving the problem – hiring more people in order to soften the working load. This action would require additional time and financial resources, as the HR department would have additional work. Thus, it will be necessary to plan the hiring process. In order not to discourage people from performing their tasks properly, it will be necessary to elaborate the bonus system, for compensating working overtime. Originally, the workers who are the most responsible should be awarded for their enthusiasm and accuracy in performing the working tasks.

The following step is the planning of the working process with the aim to avoid the necessity of working overtime and with the aim of more reasonable allocation of time resources. It should be stated that it is the main reason for all the problems in any company. Customer care strategy needs to be elaborated separately. Generally speaking, all the problems may be solved through proper planning, management, and resource allocation. In order to stop the further decline of productivity while the plans and decisions are being implemented, the primary compensation plan should be elaborated. All the dissatisfied customers may be asked for an excuse, and the steps for the improvement of the work may be announced to them.

Schedule

The schedule of the allover process is developed with the maximum time gap. Originally, all the issues may have been solved much earlier; nevertheless, there is a strong necessity for unforeseen obstacles and circumstances. Some of the actions may be performed simultaneously with the other actions. Thus, the shortest terms of the plan implementation are available.

Staffing

There is no necessity to mention that all the actions should be performed by qualified and experienced managers, who will be able to mention the drawbacks in the plan implementation and solve the appeared trouble quickly and professionally.

Plan	Staff
Hiring plan elaboration	HR department. An HR manager with essential experience in solving the issues of high turnover
Hiring new employees	The HR department in general. Those who will be engaged in the employment process should have experience in communicating with people. Originally, there was a strong necessity to choose the best of the best, for the new workers were encouraged for responsible performance of their assignments and were not afraid of working overtime.
Compensation plan	Financial department with the HR department. The joint work will be required – the HR manager will have to decide who will get the compensation, and the financial department should consider the size of the award.
Awarding	Joint work of the two departments will be required: the financial department awards, while the HR manager thanks for responsibility and professionalism.
Customer care strategy elaboration	The marketing department will have to solve this issue, while the other departments are engaged in the process of improving the overall performance and solving the issues linked with the performance decline.

Budget

The budget for the allover plan will entail the compensation and the salary for the new employees. Originally, all the other actions, which are stated in the plan, must have been performed much earlier, before the problem occurred. Thus, the HR and marketing departments may be fined for late actions. Thus, the budget of the plan may be decreased. The expenses linked with the implementation of the plan will also entail the communication costs, the study of the experience of the other companies, research of the literature sources, and the necessity to keep the data safe in order to avoid information leakage.

Hiring plan elaboration	HR management. This is the direct task of the HR department. Thus, there will be no expenses.
Hiring new employees	All the expenses will be closely linked with the salaries of the new employees.
Compensation plan	Financial management. This is the direct task of the HR department. Thus, there will be no expenses.
Awarding	Compensation award * amount of the awarded employees
Customer care strategy elaboration	Marketing management. This is the direct task of the HR department. Thus, there will be no expenses.

Request for Authorization

The period of the plan approval should not exceed the time to the nearest CEO meeting. Anyway, if there are some drawbacks found, all the amendments should be made urgently, as there is no time for further aggravation of the problem. Originally, these are the actions that should be provided in the first turn, and if the results are lesser than it is expected, then further improvements should be found. Anyway, these are the initial actions aimed to solve the problem, while the shutdown may be fatal.

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Productivity Decrease and How to Address It

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