ZENITH PROPOSAL PHASE 1

1. ZENITH PROPOSAL PHASE 1 By: Sonia Choi, Mellisa Tan, Elizabeth Le,Richard Ly, Johnathan Lam

2. COMPANY OVERVIEW Zenith is a joint venture of a major computer firm and a leading supplier of hospital products It’s product is information management systems for health care institutions Idea behind their product is because institutions are so complex now, an integrated system of patient records, staff scheduling, medication tracking etc is needed to ensure a smooth running institution

3. Clear Cut Issues of Zenith Enthusiasm of employees are at an all time low High Level of employee turnover Declining profits Dissatisfied Customers Dramatic increase of customer complaints

4. CORE ISSUES • Issue of communication between departments • The lack of communication causes a snowballing effect of different problems • Issue of not having a Corporate Culture • A corporate culture needs to be developed so employees are cooperative, focused and committed to organizational goals. • Employees are lost in the sense that they don’t have a goal to work to or satisfy • Employees start to develop their own corporate culture such as

5. Issues Due to Lack of Communication Installation team are not setting up the systems up to par with what the sales from marketing promised Maintenance has very low enthusiasm for their jobs to fix the problems of the installation guys The moral of marketing is low because of the poor image their product has got, they are making little commission and they have to push very hard to sell Tension between departments as they are starting to blame one and other for the failures

6. When problem arises to the system from a poor installation, maintenance has come fix the problem free of charge Marketing Promising Unrealistic Deadlines and expectations which the company is not capable of Installation is constantly over budgeting their hours and thus not running all the test to the systems like they should be Marketing is giving more unrealistic promises which perpetuates the problem of the firm and thus starting a cycle over Maintenance deals with angry clients as well as they can’t earn extra revenue because majority of their time is spent fixing systems Zenith has now gotten an unfavourable reputation which causes makes selling their product harder

7. RESTRUCTURING SOLUTIONS Switching it to a mixture of human relations and high involvement approach Facilitate communication between departments by setting up bi-weekly meetings via video conferences Introduction to gain-sharing plan Generating a larger bonus for sales in Marketing Increased intrinsic rewards

8. Solution to Communication Problem Have meetings bi-weekly between management from all five different regions with the department director via video conferencing There should also be meetings between departments, the vice presidents and the CEO Darlene Adams to discuss the problems and issues that their front line employees are experiencing

9. Solution to Organization Culture Begin by developing a mission statement, vision statement and core values CEO of Zenith Darlene Adams should hold a board meeting with the Vice Presidents and directors of each department to come up with a statement to be instilled mission statement and core values can be advertised by posting it on company websites and on company walls so it is visible to all employees

10. EFFECTS AND ROLE OF COMPENSTATION

11. Pay For Knowledge Plan Pay for knowledge: a base pay strategy that is based on the total value of the skills and competencies that each employee has acquired Advantages: incentive for employee skill development, high work force flexibility, doesn’t require job descriptions, broader jobs with more intrinsic rewards, etc.

12. Cont’d Provides employees with an incentive to expand their knowledge, skills and expertise Facilitates job rotation, job enrichment and job enlargement Cost saving Includes job family 2 and job family 3

13. Skill Grid Strategy 18 skill blocks 5 horizontal skill types and 4 vertical skill levels Employees receive an increase in pay as they complete each skill block Completion of horizontal row of skills before moving up to a higher row of skills 4 pay raises are possible in one skill grid 20 weeks to master \ 4/5 years

14. EXAMPLE: TEMPLATE OF ONE JOB FAMILY Job Family 2: Description: Entry level Job positions. Fields may vary. Positions require college/ university level educational background and/or 0-3 years of relevant experience at the minimum. Required professional accreditations completed or completion within first year is mandatory. Positions are easily displaceable and there is high competition among applicants. Bargaining power is minimal and compensation system is primarily determined by Human Resources Management. Skills are limited. Systems Design Analyst Junior Systems Trainer Junior Application Programmer Compensation Officer Systems integration Specialist Systems Marketing specialist

17. Job Evaluation Plan

18. EXAMPLE: JOB FAMILY 4 Director of HR, Marketing, and Systems Development :COMPENSABLE FACTORS

21. EXPECTED OUTCOME • Job Family 2 • Desired behaviours: • Increase Productivity Level • Increase communication • Emphasize group effort • Motivation to meet expectations • Indicators: • Raise productivity by minimum 15% • Open door policy, open communication • Interaction and cooperative team efforts, group sharing

22. EXPECTED OUTCOME • Job Family 4 • Desired Behaviours: • Create effective organizational strategies • Ensure management of department operates efficiently • Indicators: • Targets are met exemplified through comphrension of work strategies assigned • Communication within department to ensure operations are on task