Week 5: JVA Corporation
The strategy that I will propose to use to determine how JVA Corporation will cut cost to re-evaluate the companies vision to make sure that we have accurate job descriptions for the expectations of our employees to ensure that we have the right people doing the jobs and to make sure that there are not any occupations that are overlooked to see if we can consolidate jobs or find a better way of streamlining these different positions to make sure that the corporation is running as efficient as it should be. Also by re-evaluating our work force, we can restructure the way that we pay out compensation or our employees based off of their performance and the type of job that they are doing. Finally, for the added benefits such as discounted tickets, cell phones, home/auto insurance, and corporate cards, we will minimize the benefits and set different criteria for each to make certain employees eligible for individual perks based off of tenure, job title, and position. First we will evaluate the jobs that we have and restructure the compensation program to see if there are ways that we can save some money from this aspect of the business. The way that I have decided was the best way for us to cut cost in this area would be to raise the quotas and only if the employees or departments hit and exceed these goals they will be compensated according to their at risks. If we raise their quotas by 6% and pay out the same compensation for that amount of work, then we would be getting more productivity out of our employees which would help us generate more revenue but still keep the compensation the same for the employees versus lowering the payout.
Next I have discovered some key benefits that we can try to minimize to help reduce costs. When it comes to the added perks such as discounted tickets, cell phones, home/auto insurance, and corporate cards we will find ways to keep the benefits for the employees but find ways to minimize the usage to help save money. For all employee perks, the employee must have at minimum of a 5 year tenure to be eligible for these perk moving forward for any new employees and all existing eligible employees are grandfathered in to ensure that our long tenured employee are taken care of and that they do not hold any resentment toward the company to make sure they stay satisfied with their job. When it comes to discounted tickets we will only allow a certain amount to be purchased per year per employee. Instead of having these tickets available all year round for employees, they will be limited to 1 ticket per head count in each employee’s family, every 6 months to help minimize employees over using this privilege. For cell phones, we will continue to cover cost for the cell phones for management employees,