I will use the case study of ‘Pound-Co finance’ to discuss this topic.
Brief about the organization
Pound-Co finance was a financial company founded in 2006 which provide small scale loan between 500-5000 Euro. It has Head office in Huddersfield, England and branches spread in north England. It had central field offices in each region call ‘Hub’ which there were Regionals Operation Manager in each Hub who take care the local branches. Each branch has one manager and 3-4 financial advisors.
The problems
The organization later focus on profit where the branch managers and financial advisors were target to generate new customers every week. There was a target of money earn from repayments each week if the employees want to earn bonus. And the organization target the employees to influence customer to refinance and extend the loan so the organization can generate more profit. These create pressure working environment. In consequence, many employees leave the organization because they can’t hit the target lead to missed bonus and the base salary alone is insufficient for their living expense.
Source: https://www.scribd.com/document/407099785/Case-study-on-managing-people-in-an-organisation
Why people managing is important?
Managing people is important to retain employees, balance work environment and train employees to reach the organization goals. Reward alone isn’t enough, it may drive workers motivation but at the same time it put high pressure on them.
‘Reward might attract worker to the job but comfort and happiness in work place is what make them stay’.
In order to create working environment that pleasant and motivative for the employees, the supervisor need to understand their people. It was necessary to manage them closely.
According to Pound-Co finance case study, the keys component of people management are: communication, comprehend, and collaboration
Communication
Employees opinion is very necessary to develop workplace environment which everyone happy and motivative to work. Communicate help supervisor understand their employees better. It is important to communicate to them to know employees problems, their pressure, and their opinion about the workplace environment and works.
In Pound-Co finance case, the supervisor should had ask the employees opinion such as: can they handle the work?, is the job too stress and pressure?, how do they want the company to paid them?, do they happy with the jobs, managers, colleague, and workplace?, do they have any problems relate to work?, and etc. So they could use the information to set new proper works target, manage salaries pay, and save employees mental health which will make the people stay with the organization.
Comprehend
Profit is important when operating the business but comprehend to the employees is also important because employee is the one who make money for the organization. The supervisor think they had set proper target for the performance and reasonable salary for the jobs but is that so in the workers point of view? Sometime the supervisor should put their feet in the employees shoes so they can set the target performance and salaries that both employers and employees happy.
Collaboration
The employer should visit and observe their workers sometime. They have to observe whether the employees have enough skills to carry the works so they can provide necessary training. The employer also need to see whether the target is really possible to reach, whether the amount of works is too much or the time isn’t enough. The employer need to closely observe their worker sometime to truly understand what is lack, what is need, what is possible or impossible to do. So they can prepare the necessary training.