DrainFlow is a large residential and commercial plumbing maintenance firm in the USA. The company has effectively used specialization to reduce costs to stay ahead to its competitors. Although specialization does cut costs significantly, customer complains has been rising lately. The company has been losing its customers to competitors as Lightning Plumber because of customer dissatisfaction. Customers have been complaining from response times, unorganized service and costs. For instance, overcharging customers and rescheduling several appointments due to assigning wrong plumbers to wrong job. Employees have also been experiencing a decline in job dissatisfaction and motivation due to overspecialization.
The company hired a regional manager, Lee Reynaldo, who used to work for a competing firm, Lightning Plumber. She found that the employees aren’t motivated and surveys have shown that 40% of customers felt the experience wasn’t good and 30% would go for competitors. As the company is in trouble and revenues shrink, Lee is proposing to use cash rewards to improve employee performance, job satisfaction and customer satisfaction. Also she wants to find people who are a better fit with the company’s new goals. So it would be better if hiring methods were standardized to find qualified employees.
Therefore, the report will tackle major areas such as job satisfaction, job design, personality traits and organizational behavior.
Employees at DrainFlow are not motivated neither satisfied and that is resulting in poor customer service and shrink in the company’s profits.
Research shows that job dissatisfaction leads to demotivated employees, higher absenteeism and turnover that can lead to decrease in productivity and profits. A study conducted by two researchers, Jim Harter, Ph.D. and Frank L. Schmidt, Ph.D., shows that engagement at work causes higher financial profits performance. “Employees show up for work, they please customers, they build a safer environment, they produce higher quality products — and those things accumulate to affect financial performance”. Several studies have also concluded that satisfied employees are more likely to be productive at work.
Job satisfaction is also related to OCB- organizational citizenship behavior. Satisfied employees tend to act positively and go beyond expectations in their jobs. Employee satisfaction is also related to customer satisfaction. Employees who are satisfied with their jobs are more likely ready to please their customers and provide better service. Satisfied employees have the ability to increase customer satisfaction and loyalty. As all DrainFlow’s employees work directly with customers it is crucial then to focus on employees and customers satisfaction.
DrainFlow’s employees are dissatisfied with their jobs. The current structure assigns tasks without taking into consideration task interdependency. The tasks are unorganized and lack proper coordination and the know-how. The company is facing problems when they send plumber to jobs meant to be for a plumber assistant and vice versa. This is being translated in employee dissatisfaction and poor customer service. The company is divided into four basic job categories which are plumbers, plumbers’ assistants, order processors, and billing representatives.
Developed by J. Richard Hackman and Greg Oldham, the job characteristics model (JCM) says we can describe any job in terms of five core job dimensions: skill variety, task identity, task significance, autonomy, and feedback. “Skill variety is the degree to which a job requires a variety of different activities so the worker can use a number of different skills and talent”. Employees at DrainFlow have narrow tasks that don’t require variety of skills and talents. “Task identity is the degree to which a job requires completion of a whole and identifiable piece of work”.