World's best tool coating company

Strategic Analysis

This section of the report will provide the strategic analysis of the organization of our scenario which comprises of identifying internal and external factors affecting the performance of the organization. 

Internal Factors

The internal factors are those which are under the control of the organization. In the scenario, the World’s Best Tool Coating Company is facing the human resource factor in terms of innovation and also facing the communication issues among the employees of the organization. As the organization wants to become innovative and creative with the help of their employees, they must need to specify the incentive and rewards to motivate the employee to think creatively (Hidayah & Dewi, 2020). The organization knows that innovation can be the core competency to outcompete their rivals. The enhanced communication among the employees should exist in the organization for the smooth flow of information across the organization (Shields, 2007). These factors can be controlled by effective remuneration strategies because the benefits and compensation provided by the management of World’s Best Tool Coating Company may enable their employees to think creatively and apply innovation in their business strategy (Urbancová & Šnýdrová, 2017).

External Factors

External factors are those which are beyond the control of the organization (Bannerjee, 2015). As the World’s Best Tool Coating Company is operating in the field of tools and equipment industry, technological development is not in control of the management of the organization. To tackle this external factor, the organization should monitor the technological advancement in the industry and adopt quickly whenever the new technology introduced (Vrontis, 2017). These are some external and internal factors that are faced by the organization and it can be managed by outlining the effective remuneration strategies for employees (Słomka-Gołębiowska, 2020). The other external factor which affects the performance of the business is environmental issues and sustainability concerns. As World’s Best Tool Coating Company is dealing with the coating of cutting tools due to which CO2 and other greenhouse gases are being emitted in the atmosphere and harming the environment. To remain sustainable, World’s Best Tool Coating Company need to implement the latest technology in their equipment that helps them to minimize the emission of GHG gase (Adler, 2007)s. Additionally, they can ask their employee to suggest some innovative strategy to reduce the impact on the environment. The organization also rewards the best suggestion so that motivation and competition level among the organization may increase. 

Identification of Issues  

Motivated employees are the primary asset of any organization so as in the case of World’s Best Tool Coating Company. The organization wants to become innovative and creative in the industry through the suggestions and creativity of its employees. But there are several issues in the organization (both external and internal) that are acting like barriers in achieving the desired motivation level of employees. These issues are mentioned below.

Lack of Financial Rewards: Financial rewards or incentive is the primary source for motivating the employees (Jenkins Jr, et al., 2008). In our scenario, the management of the World’s Best Tool Coating Company is lacking in providing such incentives and rewards to the employees upon achieving their targets. Financial rewards can be in any form like increment in salary, bonuses upon achievement of objectives, innovation linked wage incentive and profit-sharing (Shields, 2007). But the organization has failed to implement such remuneration strategy to motivate their employees through such basing their remuneration on rewards and other incentives.