Excessive working overtime in parapex company

Abstract

Nowadays, many organizations select working overtime as a quick solution to increase output with low cost, to cover the unexpected absences or to “dig out” the trouble of broken machinery, rush order from customer. However, high overtime levels will cause many negative effects such as Increased health issues, Safety risks, Decreased productivity, High turnover rates, Morale problems, Troubles with family life. Then, it will hurt the business in long run. This thesis attempts to discover the problem of excessive working overtime in Parapex company, investigate the causes and establish the plan of solutions for the problem. The thesis focuses on qualitative method by conducting the in-depth interview with problem owner and related people. After conducting the in-depth interview, the theories from literature review are used to support and explain the real case. Firstly, through information from HR Department, high employee turnover and Decreasing in sales performance were considered as two important symptoms that Parapex company needs to notice. Next, some of resigned workers were interviewed to find the reason why they decided to quit their job. In addition, the Vice Director of the company and the supervisor of the factory were also interviewed to understand more about the situation and to determine the problems. Through the interview and literature review, four problems were found out which included Excessive working overtime, Low Salary, Strict Punishment Policy and the far location of the company. Within these potential problems, Excessive working overtime is selected to be solved in this report because this problem is the most feasible for solving. After determining the problem, the interview with Vice Director and HR Officer were conducted to discover the causes of excessive working overtime problem. Through these interviews, it was recognized that the supervisor received too much orders from customers without consideration carefully about the capacity and number of workers. She gave a poor decision of receiving large orders because she had lack of required skills such as forecasting and production planning. She did not establish a obvious production planning before deciding to receive big orders that led to lack of human resources for production and problem of excessive working overtime. The supervisor of the factory had lack of required skills because of the 4 poor selection in recruitment and lack of training. After finding out the problems and the causes, the action plan was established base on the possible solutions from literature reviews and the suggested solution from the problem owner.