Solution 1. Employees will receive bonuses, based on their team meeting or exceeding the team’s cost savings performance targets. When we analysis the case there few major problems arise in the trial cost saving is performance-related pay system as given below:

1. To achieve target efficiency teams are compromising with the quality. We can see the explanation for this in Samantha's interview that "The trial cost efficiency reward system that was introduced in 2017, and it is just not working. Team Scuba Assembly is sabotaging our performance. How can we meet our cost-saving performance targets when Team Scuba Assembly gives us faulty product to process? They have skimped on material, so it takes us much longer to complete our part of the manufacturing process."

In above sentence they are clearly mentioned the team scuba finishing not getting quality stuff (raw material) for their work.

2. Improper utilization of common machine and blaming concern: there are few common machines which utilize by the various teams. But as the per statement" someone has been leaving the calibrator machine in such a mess, so we waste valuable time resetting the gauges before we can use it. I am sure it is a member of Team Oxy Finishing. The system is not fair. “This sentence gives the serious concern of blaming each other which breaks the harmony between the teams. The performance bonus is creating hostile nature between the team. Which may creates problem to company ethics and values.

3. Trial cost saving is performance-related pay system include only the few team: Others teams are not happy because they are not getting any rewards for their work while others are getting the rewards for the trail project. we can have explanation for this in the below line "I have just had to deal with a delegation from Team Fire Finishing who is upset because they cannot share in the cost-saving performance bonuses."

4. There are other department are also workking eficiently like purchase department is getting delay to buy raw material due to cost variance analysis.

Solution 2: No, Team based cost-saving performance measures are inappropriate for assessing performance and awarding bonuses. Explainaton: As we can say in the ATL case there one team finished product is the raw material or the other team. If the first team is not focusing on quality other team will get inappropriate raw material. Which impact the other team performance? In ATL case there is lack of quality control to make this process effective. Utilization of common machine by the team is the problem as team need to make adjustment in that for their work.

To make this process implementable we have to focus on activity based efficiency with high quality control to save the time for team as well and if all team achieve the target then we have to distribute the bonuses. This will bring harmony and effectiveness between the work and they will achieve the target with the help of each others.

SOLUTION 3. There are various methods for performance measures that not only focus on efficiency but they also focus on quality measures of product. Few are given below:

There are three main techniques, which drive world-class manufacturing.

Concept of JIT (Just in Time) and lean management techniques are used to reduce the cost by minimising cost and waste.

Application of total quality management techniques in reduction of defects and tends it to zero defects. Six sigma, Parraito chart are the few TQM techniques.

We can implement preventive maintenance to avoid machenical failure. It will lead to continuous production which increases the efficiency of teams.

Bonus Scheme options

There are various bonus schemes that designed to make workers more productive and satisfied at the workplace. Below are as few :

At Operating level: At this level below bonus scheme or combination of schemes can be applied for the workers

Bonus scheme at individual level

Bonus schemes at team level

Site Bonus Scheme

Bonus schemes at corporate level

In above bonus schemes., organisation can choose any level or any kind of bonus scheme to motivate the staff, team or individual workers.

Some other schemes are

Quality Bonus Scheme: Again quality bonus schemes are related to reduce the waste and improve the quality of proctor. It is highly applied in both manufacturing and service sector. ATL Quality is also a concern with efficiency as there are one team finished product is the raw material for other team.

Cost Management: In present erase every organisation is focused on cost management. As in every sector they try to reduce there cost by imporved efficiency and minimising waste. To encourage employees for achieving the cost effectiveness the organisation share there gain as they recieved it from effective cost management. It gives ATL teams harmony between each other and improve co-operation.

SOLUTION 4.A)

"Strategy is a set of decisions and actions aimed at gaining a sustainable competitive advantage." Businesses that put their efforts strategically get the gain and sustainable advantage in the market competition.

Enterprise strategy level: At enterprise level planning we decide the vision and mission of the organisation. And how strategic, tactical and operational decisions will execute and control. Top management of a manufacturing enterprise defines the enterprise stategy for the achieve the efficiency and effectiveness.

Corporate level: The corporate strategy provide a guide line regarding the planning, staffing and allocation of resources. At this level strategy we mostly focus on effective planning. At this level business heads took decisions r expension of the firm or the existing product line. In ATL top management can focus on the group harmony and policy for reward system that creates the harmony between team. Like a bonus of $30000 if all team achieve the target of production in a given time so now they have to focus on group harmony instead of individual department work.

Business level strategies: Business-level strategies are gust behind the corporate level strategies focused on the performance of specific busines unit or on the group of business units. This is mostly focused on how the planning will execute which is developed by upper management.

Business units are usually individual enterprise-like entities. They focus on a particular industry, product or service type, and or market. Business-level strategies concern these things:

Business level Activities are application of corporate level strategies at business level units. Sometime it’s about cooperation and coordination’s between the business units. This can be seen in Samantha’s statement that other teams are not working properly.

In these strategies we develop the capabilities, distinct competitive advantage and resources in each unit. IN ATL use of common machinery and team integration can save lot of time and waste.

We need to keep close watch to the business industry and the Microenvironment. ATL also can review other peer industry and can learn new best practices

Functional-Level Strategies

Among other things, functional areas include -

“New product development or designing new services”

Quality control technique implementation

human resources Policy

For ATL we have to focus on production department for quality product (from each team).

Each function of business unit contributes to achieve the corporate strategies.

SOLUTION 4B) This means we are integrating the various business unit to achieve a common goal that is sustainability and achieving corporate plan, with clear vision, mission and achieving goal. It can be achieve through only proper implementation of planning and controlling the process. A synergy of human resource creates great effectiveness to the work. To provide motivation we need a rewards and recognition program to achieve our reinforce sustainability behaviors. There should be a proper management and authority distribution, new ideas of improvement should be taken care and should be recognized as well.

The mission statement of ATL itself says “To provide an intergeneration commitment to its stakeholders through the adoption of Sustainable strategies within its value chain”.

So ATL is also looking for the sustainable growth by reducing cost. They focused on long term integration in Team Fire Finishing?has some new technology adoption to reduce the cost and in other team, ATL try to achieve (1) “manufacturing cycle time”, (2) Raw resources usage and (3) Total output of production.

So we can say ATL is focused sustainability throughout the organization and communicate and implement their strategy with in the organization.

Solution 5A) If we look in to the Malaysian culture it is the mix of various Asian culture. It consist “Malay 50.4%, Chinese 23.7%, indigenous 11%, Indian 7.1%, others 7.8%”. In Malaysian culture people are focused on unity, loyalty and ethical values. They always respect there elderly. If any member of family has financial suffering then the other members are there to help him, this how they work in their culture.

So for ATL , Mission statement should remain same as it would be the values come from the parent organization. For employee involvement we can conduct and social formal occasion (corporate dinner) and can communicate about the policies and company strategies. As in Malaysia, people help each other so we can set the new performance evaluation and reward scheme on Activity based or as at the complete value chain (For all team who are involving in the production of one good).

Solution 5 B) As we see there are cultural differences in both countries. They have different etiquettes and business practices. The differences we can understand by the way of greeting, In Australia people generally handshake each other (even opposite gender too). While in Malaysia we have different way to to greets as “Malay women may not shake hands with men. Women can of course shake hands with women”. Men are showing respect to women by placing their hand on their heart. When we have workplace difference like this we need to made change in our policy.

The other feature of Malaysian culture is that they use the Silence as an important part of their communication. They pausing himself before answering a question, it gives a indication that they took appropriate time and consideration to a question to respond carefully. “Many Malaysians do not understand the Western propensity to respond to a question hastily and can consider such behavior thoughtless and rude”. While In our ATL case we see the multiple team put allegation to each other while in Malaysian people doesn’t shows these kind of anger in public place or at work place. They believe that they can make things better if they remain calm.

So the cultural difference makes the people different. We need to change our reward policy as per the work place etiquettes and on cultural values of Malaysian to get the sustainability.

Solution 5 C) : As we see that people from Malaysia has a different hand of culture in the sense of working, societal representation and ethnicity. We need to make few modifications to our strategy to get sustainability in our operations. A good communication strategy with effective communication, for its stake holder and employees always reduce the difference. If company updates about ethics and policy on timely basis it makes the stake holder about organization vision and follow up actions.

For Malaysia formal communication and gain-sharing bonus schemes particularly focus on cost reduction and efficiency savings and formal communication creates the awareness about its values. Gain-sharing is a formula-based type of bonus scheme that enables employees to share in the financial gains and efficiency savings made by a company as a result of improved performance. The formula determines how the gains are to be shared between the company and its employees. It gives ATL office harmony between each other and they can overcome through cultural and financial difference.

References:

http://www.commisceo-global.com/country-guides/malaysia-guide

https://www.goodreads.com/shelf/show/strategic-management