Reference no: EM133511361

Maxxa Corporation

Maxxa Corporation (MC) is a major manufacturer of machine tool parts for the aerospace industry and other sophisticated manufacturers of robotics and hi-tech equipment in Thailand. MC is a multinational company headquartered in Texas, with manufacturing operations located in Shanghai and Bangkok. Although its products are premium-priced, the company has experienced rapidly escalating sales and is now the dominant player in several of its key product areas.

HR reports in December 2022 revealed several issues that require urgent attention:

1. Employee turnover rate in 2022 was 18% and is a significant concern for MC. Survey results on this matter showed conflicting results. The results of one survey pointed out that one of the key factors contributing to high turnover rates is the dissatisfaction with low levels of salary and unsuitable benefit plans. However, another survey showed that Thai employees expressed a preference for job-content factors such as interesting work, the chance for growth, achievement, and increased responsibility, and they listed money and job security toward the bottom of the list of things they looked for in a job.

2. On the shop floor, accidents are common among the production workers. There seems to be a lack of safety awareness and procedures which are likely the causes of high accident rates. Some form of training is urgently needed but the workers are occupied with fulfilling new orders and hardly have any time to attend the training.

3. After Covid time, while many employees are pushing for working from home (WFH), management is concerned that this ultimately will nullify the company culture, which emphasises teamwork and team spirit, and reduce employees' productivity.

The company intends to use the most effective way of managing the Thai personnel. You are hired to consult the company on their HR policies.

Question 1

Maxxa is considering two training methods, namely on-the-job and off-the-job training. Suggest and justify which of these methods would be suitable for a) managers; b) busy production workers.

Question 2

a. Currently, Maxxa's base salary is set on the basis of a combination of skill-based and senioritybased salary. Do you see the need to change to 'pay for performance'? Justify your answer.

b. Restructuring the workplace during Covid-19 was a strategy that Maxxa had to adopt to survive. Now the world has re-emerged from Covid-19. Maxxa is bouncing back. However, they are faced with a new problem. Like other companies, Maxxa is facing the Great Resignation and Quiet Quitting. The "Great Resignation" is the phenomenon where Australians are resistant to go back to pre-Covid working conditions and pursuing a better work-life balance. "Quiet quitting" refers to the phenomenon whereby an employee performs solely the minimum requirements of their job, without exerting additional time, effort, or enthusiasm beyond what is deemed absolutely necessary. Furthermore, during Covid lockdowns took hold and Maxxa shut down operations, a large number of employees lost their jobs (approximately 15% of the workforce). Now, as the country and economy open up again, Maxxa is struggling to fill those same roles, putting increasing pressure on those that are currently working. In this context, hiring new people and retaining existing employees are essential to the survival and revival of the businss. Focusing on the reward system only, what actions should Maxxa take to resolve high turnover issues?

Question 3

You advised Maxxa to allow WFH, when it is practical and reasonable. Give three justifications for your advice.