1.0 IntroductionThis is a report to presents case study analysis of Audio Technical Company recently taken over by American Multinational, Zenith. The report looks for managerial issues faced by the CEO of Audio Technical and how their handling has impacted the employees of the organization. Secondly, it gives strategies Audio technical can adopt in improving staff learning and training program. Thirdly, the report proposes possible solution to the employee motivation challenge facing Audio Technical in the production department. Finally, the report analyzes the problems of passing leadership from a founder led organization facing Audio Technical and recommends three steps that could have been followed to achieve a smoother transition. 2.0 Managerial Issues Faced by audio Technical2.1 Employee training and developmentBefore the takeover, David James, the owner and CEO of Audio Technical Ltd was faced with a number of management issues.
From the beginning, Audio Technical was in need workers with high skills in new product development. This means Audio Technical needed the development of the skills of its employees continuously so they could be able to develop new products. The change in work nature in most organizations is a real challenge as it is to Audio Technical (Robbins, Decenzo and Coulter 2011).
At Audio Technical staff training and development takes place at the factory and in technical colleges located at the Oxford, London and Glasgow sites. The staff training program at Audio technical has led to the development of a workforce with good skill that is able to handle 80 per cent of the development of the sophisticated product Audio Technical produces. 2.2 Employee Engagement issuesMost organizations with highly skilled employees are faced with the problem of employee engagement.
Employee engagement involves making sure that employee make optimum use of their skills in contributing to the performance of the company (Robbins, Decenzo and Coulter 2011). Altech Technical engages its employees by making sure they are involved in product development from start to finish. The CEO of Audio Technical ensures his employees do 80 per cent of the production of high technology equipment. According to Kanter (2003) employee engagement is the biggest factor leading to improved performance and productivity which is shown at Audio Technical with increasing profitability.
In the case study, the profitability of Audio Technical keeps on increasing year after year, and the company collected revenues of over 620 million in the year 2009. Employee engagement contributes to the perception that Audio Technical is an interesting and worthwhile organization to work for. Furthermore employee engagement was found to influence the levels of self-efficacy where employees make product development decisions that make sure the organization produces only high quality products. The employee engagement strategy at audio Technical also brings about a sense of responsibility over the quality of the final product.
If a product is good the employees also feel proud. 2.3 Performance Appraisal issuesPerformance evaluation is a common issue in most organizations. At Audio Technical the CEO himself conducted the annual performance appraisal and reported the overall performance of his staff (Ramlall 2004). The Audio technical performance appraisal process is thus undertaken without ignoring its effect on staff morale. By using a balanced performance appraisal process, Audio Technical ensures their employees are not dissatisfied with the performance appraisal process.