Welsh Utilities Regulator is an organisation which deals with providing utility services to people within Wales, The organisation has 119 employees as of now and is committed for growth as well as development of the organisation in the longer run (Clair and Milliman, 2017 S). Thus it is quite crucial to have a future business plan that will enable Organisation to effectively provides services to citizens within the region.
Understanding The Problem
There are around 119 employees within the Welsh Utilities Regulator and all of them had shown satisfactory performance, but the problem has been with the bonus scheme of the organisation, which seems to be quite liberal and does not benefits the organisation in a big way. If you want sample paper of Sainsbury's organization, then click on Analysis of Business Environment - Sainsbury's.
For understanding the problem, it is important to understand the environment and surrounding in which the organisation operates, these are discussed as follows:
- Political:This is the factor which is identified with the dependability of the political state of country. The organisation operates in UK and the various
- Economical factor: This is most basic factor which performs diverse exercises of association in stipulated era. The current organisation operates in a sound economic environment and it receives necessary funds through Welsh Assembly (Leach and Scoones, 2013).
- Social:This factor manages the perspective of worker working in the association in successful way. There are diverse parts of the association helps to perform different elements of which are perform by the association. The organisation provides various services to the people like water supply, electricity supply etc. The various social factors do not have much effect on the overall health of the organisation in the region, because of the fact that organisation is in the business of providing some basic necessities to the citizen on which social factors does not matter much.
- Technological factor:This factor is manages the usage of various sorts of innovation keeping in mind the end goal to keep up the adequacy of association (wart and Kinnie, 2013).
- Legal factor :This factor is worried about satisfying the distinctive guidelines and control made by the administration within the country.
- Environmental: This factor is identified with the distinctive sorts of condition of association in compelling way. There are different elements which are identified with the outer inward condition of association.
Porter five forces Model
It is the devices for breaking down rivalry of the business it attracts the mechanical association to drive the five powers which decide the aggressive force in the commercial centre.
- Threats of new entrants:This power decide that it is so natural to enter a specific mechanical. On the off chance that a mechanical is likelihood of the association.
- Bargaining power of suppliers: Solid dealing power enables providers to offer higher evaluated or low quality crude materials to their purchaser (Goyal, 2012).
- Bargaining power of buyers:Purchasers have the ability to request bring down cost or higher items quality from industry makers when their haggling power is solid.
- Threats of substitute:This power is particularly undermining when purchaser can without much of a stretch locate the substitute items.
- Rivalry among the competitor:This Force is the principle determinant on how focused and productivity an industry in aggressive industry need to contend forcefully for a market (Fincham, 2012).
Objectives of the Organisation
Every organisation runs on an objective that it would want to achieve in the longer run, same is the case with current organisation it aims to full fill the objectives such as reduction in the overall cost of operations so that profits can be made and efficiency can be maintained within the organisation. Yet another aim would be to enhance the Customer base by providing services to more consumers within the region (Dwyer, Stanton and Thiessen, 2013). These objectives are discussed in detail as follows:
- Cost Reduction: The organisation will try to reduce its cost by framing certain policies that will bring efficiency within the operations and thus will lead to cost reduction. Welsh Utilities Regulator is engaged in providing services of necessities to the citizens of Wales, thus it is quite important to reduce the overall cost if company wants to make necessary profits, because it wont be able to charge higher prices from the citizens due to caps which are laid down by the government on the prices of necessities like water and electricity. Thus, the sole contributory for the company's profits can only reduction in cost and not a increment in the prices of services.
- Increase in Overall Customer Base: The organisation may also takes the path of raising its overall revenues in order to increase the profits of company in the longer run (Dolowitz, Keeley and Medearis, 2012). The board of directors of the concerned organisation must make sure that it raises the access of its services among general people and citizens, this can be done by adopting an aggressive technique of expansion of the organisation and its operation. If you want to get top-notch grades in your IT Assignments, then quickly opt for our Online IT Assignment Help
Plan to sort out the problem
STEP 1: The WUR is providing a bonus of 35% to the employees of the organisation which is way too higher for the company in order to make substantial operation and increasing the efficiency of the company in the future. For solving the purpose the company need to decrease the amount of bonus they are paying as they are not able to meet the criteria that is required by the government. The company was paying such an high bonus to attract the key employees from the private sector but if they continue to do so they will face a government intervention in the process.
STEP 2: All the WUR employees receive their full bonus in every they have worked in the company and since the scheme of this bonus has started and the bonus that are receiving is based on the regular objectives that they have to achieve which are not even challenging. The company is required to make modifications and revise the terms and conditions for the payment of bonus. The board should revise the performance management criteria so that employees are only awarded the bonus when they performed beyond the set criteria and has added the value in the organisation in some other way such as efficiencies, innovations etc.
Thus, It is quite clear from the above discussion that for the purpose of effectively enhancing the overall growth of the organisation, it is extremely necessary to have a right kind of plan that will enable the organisation to increase its sales and profitability and at the same time deliver on customer's Expectations. The organisation shall also make necessary plan to change its bonus schemes which is quite liberal as compared to other peers, which is costing too much for company in the longer run. The management of the organisation should implement a more conservative bonus policy for its employees that will be a win-win situation for both organisation and Employees.
- Clair, J. and Milliman, J., 2017. Best environmental HRM practices in the US. In Greening People(pp. 49-73). Routledge.
- Swart, J. and Kinnie, N., 2013. Managing multidimensional knowledge assets: HR configurations in professional service firms. Human Resource Management Journal. 23(2). pp.160-179.
- Goyal, D.P., 2012. Business alignment and critical success factors in information systems implementation: an empirical analysis of selected Indian organisations. International Journal of Business Information Systems. 10(4). pp.397-416.
- Fincham, R., 2012. Expert labour as a differentiated category: power, knowledge and organisation. New Technology, Work and Employment. 27(3). pp.208-223.
- Dwyer, J., Stanton, P. and Thiessen, V., 2013. Project management in health and community services. Routledge.
- Dolowitz, D., Keeley, M. and Medearis, D., 2012. Stormwater management: can we learn from others?. Policy studies. 33(6). pp.501-521.
- Leach, M. and Scoones, I., 2013. Carbon forestry in West Africa: the politics of models, measures and verification processes. Global Environmental Change.23(5). pp.957-967.