Analysis of Employee Motivation in Ilanco Inc.

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Analysis of Employee Motivation in Ilanco Inc.

Introduction

The purpose of this report is to analyse the problems of employee motivation at Ilanco Inc., a relatively small manufacturing company located in Montreal. For many years, this company operates in sweater production, and belongs to the section of clothing manufacturing industry. Currently, approximately 70 employees are working for the company.

As many manufacturing organizations, Ilanco has been experiencing a lot of problems with effectively motivating its employees. Such problems have been reflected both in the Motivating Potential Score Survey that we have conducted among the employees and in our interviews with some senior workers at the company.

First, this report gives a brief overall description of the manufacturing industry and the company, Ilanco. The major parts of the report outline and analyses the main motivation problems that Ilanco is experiencing. According to these specific problems, several very useful and practical recommendations have been made to help improve the employee motivation at Ilance. Also, in order to make this paper more insightful, some relevant motivation theories have been applied to both the analysis and recommendation sections to help analyse the problems more deeply.

Industry Description

Manufacturing is a key activity in any economy because of its far-reaching effects. Manufacturing firms represent 20% of Canadian GDP. There are around 40 000 manufacturing firms in Canada, employing almost 2 million people. Production value comes to $135 419 millions. Manufacturing firms with less than 200 employees represent 96% of total number of manufacturing firms in Canada, employing 47% of Canadian labor force involved in processing industry.

In Quebec, the manufacturing sector generates over 20% of province’s GDP. Close to 11000 firms are operating, employing some 548 400 people. In Quebec, firms employing fewer than 200 people represent also 96% of the total number of manufacturing establishments. That is, employing 49% of province’s men-power. In Montreal, experienced labor force (1996 Census) represents 1 609 820 in all industries including manufacturing sector that employs 283 370 people. Despite the importance of manufacturing industry, employment has been decreasing in recent years.

Description of Company

As an example of manufacturing fi...

... middle of paper ...

...nagement.

In addition, an appraisal system in every 6 months should be implemented at every level of the company, i.e. team level, department level, company level. There would be different levels of staff performance, e.g. company warning, improvement required, average, competent and outstanding, to name a few. The result of the appraisal is connected to wage increase, bonus and promotion.

In summary, Ilanco has a lot of serious problems in terms of staff motivation. If the above recommendations are not taken into consideration by the management, then there is a high possibility for the company to be just a start-up training school. There will still be high turnover rate, low productivity, unmotivated staff, and uncompetitive working environment. There is really no “bright” future for the company. It probably can still be profitable, but it’s just short-term focused. Once there is a down turn in market demand, Ilanco can hardly survive because of its extremely narrow product line. The management should realize that it is the staff that makes the profit for the company. Without reasonably motivated staff, the company could never focus in long term survive in the business.

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