Artificial Intelligence Medical is a rapidly growing company that faced significant challenges due to the mismanagement of the previous CEO. Artificial Intelligence Medical produces AI products, such as a robot that performs routine surgeries or diagnostic software used by different medical units of a hospital for patient diagnosis. The new CEO wants to correct the mistakes that were made before and make the necessary adjustments. In particular, it is necessary to increase job satisfaction and improve the motivation of employees who work in five teams. The main dissatisfaction is associated with perceived inequity in the distribution of salaries and lack of employee motivation.
Problems in Artificial Intelligence Medical
The most significant problems that hinder the further development of the company are perceived inequities in the distribution of income and lack of motivation. The company came to a turning point in its development, going through many important milestones and expanding to a sustainable medium-sized business in just 2 years. Now AIM no longer needs further expansion, but rather to maintain its existing position in the market, that is, to establish a sustainable process and work patterns. However, to achieve this goal, it is also necessary to solve current problems such as lack of motivation and dissatisfaction with the wage distribution of wages.
Goals and Objectives
Given the above, there is a need to achieve some important goals. First, the new manager should pay the most attention to employee motivation. Secondly, it is necessary to redistribute the teams, forming groups of 5-9 people, since 25 people cannot be a team that would effectively interact, but only a group of people. You also need to leave a pool of employees who will not work in teams but will remain on their own, since teamwork is not always more effective than individual work.
Then, to solve the problem of dissatisfaction with the distribution of salaries, you need to start by solving the problem of low motivation. Motivation can be external and internal, so you can use both external and internal stimuli. External incentives are various bonuses, a change in the corporate culture, the introduction of corporate social responsibility practices, and the redistribution of assets in the payment of wages. Internal incentives are the quality of joint work of managers and teams, leadership practice, including the selection and implementation of adequate leadership models. Also, internal incentives can be associated with setting the right tasks and choosing projects that will inspire employees and stimulate them for further development.
Finally, the new system of bonuses and penalties should adequately take into account the contribution of each employee and be a reflection of the quality of his work, based on the assessment of his contribution and merit. Moreover, the new system of bonuses and rewards should be transparent and understandable for employees, so that they can assess the effectiveness of this system, and have the right to vote in case of conflict or disputable situations. Wages can be made both on an hourly basis and following participation in certain projects and contribution to these projects. Employees should have a moderately limited opportunity to choose projects in which they would like to participate and the ability to move from one team to another.
Tasks to Realize Successful Response
To implement a successful answer, that is, to increase the motivation of employees and reduce dissatisfaction with the distribution of salaries, it is necessary to implement the tasks outlined above. In particular, the CEO can appoint five people who will be responsible for the implementation of each of the areas related to change. First, you need to appoint a person who will be responsible for creating the new system of bonuses and rewards, as well as inform employees about the upcoming changes related to the new system of bonuses to establish communication, provide an opportunity for feedback and reduce the initial tension. Secondly, you need to appoint a person who will be responsible for implementing the implementation of new leadership models that will define the relationship between managers and teams. The same person must re-arrange teams and voice the story of new transformations so that employees can express their wishes and make suggestions.
Third, you need to appoint two people who will be responsible for finding or formulating new interesting projects that would resonate with employees, participation in which would satisfy them and stimulate further development. Finally, the CEO must monitor and adjust the work of these people, and encourage them to change tactics or strategy of actions if the innovations do not bring the desired results. In addition, you need a person who will assess the work of the CEO, and point out gaps, mistakes, or shortcomings, and suggest alternative ways of developing a strategy or tactics.
Proposed Overall Salary and Benefits Solution
Most academics agree that pay increases are strongly associated with improved employee motivation and productivity. However, a financial system is needed to determine the size and method of calculating salaries. Scientists have developed the SAW system, a simple adaptive weighting method that is useful for making accurate and quick decisions (Sahir et al., 2017). This method uses a weighted-sum formula of performance ratings according to all attributes that influence the award decision. The SAW technique creates a scale comparable to existing alternative ratings, which allows this system to choose the most appropriate form and amount of remuneration, corresponding to reality. The alternatives, that is, the form and size of the remuneration, are developed based on the specified criteria.
The main task assigned to job evaluation is to collect data based on which fair pay is realized. The goal of job appraisal is to ensure that wages are in line with the value of the work performed (Koziol & Mikos, 2020). This scoring system takes into account that some positions involve more employee contributions than others and therefore cost more.
Thus, AIM needs to address the problem of dissatisfaction with the distribution of rewards and low motivation. To solve this problem, the CEO will appoint five assistants, each of whom implements one of the directions related to change. In the course of implementing innovations, the CEO will make adjustments if it becomes necessary to change tactics or strategy of actions. The first assistant will help develop an adequate reward system, the second assistant will reallocate teams and suggest adequate leadership models for the team managers. The third and fourth assistants will look for interesting projects to increase intrinsic motivation. The fifth assistant will oversee the CEO’s work and give advice and recommendations if he sees more attractive alternatives or mistakes in his decisions.
Koziol, W., & Mikos, A. (2020). The measurement of human capital as an alternative method of job evaluation for purposes of remuneration. Central European Journal of Operations Research, 28(2), 589-599.
Sahir, S. H., Rosmawati, R., & Minan, K. (2017). Simple additive weighting method to determining employee salary increase rate. Int. J. Sci. Res. Sci. Technol, 3(8), 42-48.