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Summary Unit 6 - Clockwise LTD Report (DISTINCTION ANSWER) 2021
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Unit 6 - Clockwise LTD Report (DISTINCTION ANSWER)
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Sami UddinTo: Clockwise LTD
From: Sami Uddin
Date: 21.04.21
Subject: Management and Employee Issues at Clockwise LTD
Introduction
Clockwise LTD operate in a highly competitive environment whereby recruitment has been
very difficult as there is a skills shortage for software engineers and developers and they are
located on an Industrial park outside one of the major cities in the UK which some
employees find difficult to get to. They have around 50 employees that are currently
working for them making the business known as medium sized business. The ownerships is
mainly by three people which are Patrick who is the financial director, Mitra who is the
logistics director and Mehdi who is the human resources director. They operate as a private
limited company.
This report contains the recommendations, key information and analysis on leadership and
management styles and the motivational theories which will allow Clockwise LTD to take
these actions so that they can improve their current situation that they are currently facing
within their business. This will be done by carrying out an analysis of relevant data which is
related to the business throughout the last 5 years and therefore the evidence which is
related to the main management styles and practices which have had an impact on
Clockwise LTD and their performances.
Previously, the business has performed well with an increase in total revenue and the users,
this is by the gross profit and the profit for the year figure being identified in the last 5 years
between 2016 and 2020 as the business founded by Patrick Neve and the other two friends,
Mitra and Mehdi. The total revenue in the last 12 months from 2019 to 2020 of reaching
£6M in total revenue and more than 300M users each months. However, the net profit
percentage and the net profit figure have been declining from 2018 to 2020. Due to the lack
of management, the location, shortages of staff members, taxes, wages, general expenses
and the outsourcing fees as this has led to the decrease in profits for Clockwise LTD. The
owners of Clockwise LTD have not been able to replicate the recent success that they had
during the period of 2016 to 2018.
Main Issues at Clockwise LTD
Finance
The financial information that has been provided for the business shows that overall that
there has been growing trend in the total revenue that is generated by the advertising and
the sponsorship. Between the years of 2016 and 2017, the revenue increased by £100,000
from £1M to £1.1M which is an increase of 10%. By 2017 the revenue was at £1.1M but
significantly increased by £4.3M to £5.4M in 2018. Therefore, it continued to increase at a
very slow rate by £600,000 to £6,000,000 in 2019 which was an 11% increase. In 2019, there
, Sami Uddin
was a short growth of £200,000 to £6.2M which was 3.3% increase which was the slowest
growth of revenue within the last 5 years.
The reason why there has been a drop in rate of the increase in revenue is because of the
software engineers not prioritising the urgent software error which has led to cause major
problems for the millions of users worldwide and therefore resulted in a huge loss of major
advertising contracts as they do not trust in how the business operate anymore. Making this
mistake has led to the slower rate of increase in revenue between 2018 and 2019 compared
to 2016 and 2017. The reason why the software engineers didn’t prioritise the urgent
software issue is because of Mitra’s laid back management style. The reason why is because
of this laid back management style this has led to the software engineers taking advantage
of the manager being less strict and not carrying out their job role correctly making them
lazy and less motivated.
After what the software engineers have done, there should be some disciplinary action
towards the engineers so that they will make sure that they perform to the standard that is
expected from them. Another way to prevent this is by changing the management style
from what it currently is which is Laissez-Faire. This management style allows things to take
their own course without any interruption and they give employees the opportunity to take
the responsibility rather than focus on motivating and providing any directions which has
led to the software engineers not being able to prioritise the software error.
The management style that could be used is an autocratic style. The reason why this
management style should be used is because you will have total authority and the control
over decision making, this also means that you are able to control the employees and
monitor them and this will lead to software engineers completing their job correctly. The
way this management style will help Clockwise LTD in terms of managing the employees is
that you are able to monitor what the software engineers are doing along with controlling
by ensuring that they are able to do their job correctly.
Another management style that could be used is a paternalistic style. The reason why this
management style can also be used is because the leader acts like a father figure and takes
care of their employees needs and they expect the employees to trust them and to follow
their instructions, it’s very similar to like a family treatment by using this management style.
The way this management style will help Clockwise LTD in terms of managing the employees
is that you are able to engage with the employees and having a strong bond with them, this
will lead to them being satisfied and therefore carry out their job role correctly. This will
help Clockwise LTD increase their net profit % or profitability if the software engineers are
not to be complacent and is able to carry out the task correctly.
Dissatisfied and Unhappy Employees
One of the main issue that they have is that they have a demotivated or not satisfied
workforce within the business, with the average staff turnover at Clockwise LTD at 24%,
with the staff turnover increasing from 5% in 2016 to 42% in 2020. The reason why there is a
very high staff turnover is that it can be due to staff resignations, dismissals and attritions.
But the dismissals and attritions may not have been the main factor with the existing skill
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