How Rogers Inc can be a World leader
How Rogers
Inc can be a World leader
This research paper focuses on pay off
and decision tree to evaluate the problems facing Rogers Inc.
Rogers communication Inc has been a
fore front in the telecommunication industry in Canada. This paper emphasizes
the importance of decision making by using payoff and decision tree methodology
to improve the overall company performance.
Most of the problems facing Rogers Inc
such as poor customer service, high cost of service that customer cannot afford
and management problem in decision making affected the profitability of the
organization.
Introduction
The Company of my choice for this
project is Rogers communication Inc.The Company is a Canadian communication and
media company that engages in three primary lines of business operation such as
Wireless, Cable and Media.
It offers low cost service on long
distance calling, high speed internet and cable TV.The Company has online
catalog of cell phones and other accessories and also list of plans to be sold.
Payoff and Decision tree are the
two major factors that will be discussed in this paper.”Payoffs can be
expressed in terms of profit,cost,time
,distance or any other measure appropriate for the decision problem being
analyzed”(Jackson et al,2008).Payoff evaluates decision alternative and
compares it to state of nature that can be in two categories of strong or weak.
The payoff methodology will investigate the poor performance of Rogers Inc
call-centre.
Significant problem in Rogers
Inc.
We are in a global market that
every company needs to compete and the best way to survive this global market
is to offer economical and reliable products and services. These are the
various problems facing Rogers Inc.
Cost of Service offers to Customers: The cost of service offered to
customers is really high compared to other competitor in the Canadian
Telecommunication industry such as Windmobile, Mobilitycity and Bell Inc. Every month windmobile offers fifty
percent discount on North American calling and no-activitation fee to open
another phone line. Rogers lnc lack all these kind of incentives and that has
really reduced the number of Rogers customers.
Poor Customer Service: This is another great problem facing Rogers
Inc.The timely delivery at Rogers Inc is really poor most especially
call-center.Customers have to wait between 40 minutes to 1hour before a
customer relation staff attends to the request of the customer over the phone. This kind of poor customer service has
greatly affected the reputation of Rogers lnc.Most of its customers have
cancelled their account and opened account with other phone company that are
more reliable and efficient in delivering services and products.
Unskilled Technician with Ticket Job: Most of the technical jobs at
Rogers lnc have been outsourced to local contractors that are unskilled and
also there is lack of coordination between the local contractors and management
at Rogers lnc.The performance of the local contractors has been a detrimental
factor to the success of Rogers lnc at the production level. Most of the time
local technician will show up at your house and the technician is not sure the
kind of job ticket is working on, the technician will start asking you
question” what kind of service you want to repair.
Credit Department at Rogers lnc: The credit department staff at
Rogers lnc are really rude and not professional to customers. Once a customer is
one week late in payment of his bill, they started calling the customer two to
three times a day, threatening the service will be cancelled immediately if the
customer does not come up with payment plan within a day. They would even go
further that the customers would be responsible for the cancellation fee that
ranges from $150 to $350 Canadian dollars. All these kinds of attitudes have
really affected the company; they are losing money to other competitors in the
market.
The Financial Measure to Support the Validity of these Problem
Rogers lnc is losing revenue
everyday due to lack of performance management that are not properly
implemented. The organization practices have not cut across the company,the
company needs to evaluate the performance of every department to determine
whether they are productive or redundant “ That is, organizational practices
need to be structure by managers at multiple levels to produce resources that
allow flexibility and adaptation to dynamic organizational and environmental
condition”(Zaccaro,S.J & George,M.U.2001,p174). The management at Rogers
lnc needs to spend more money to train employees and to make changes in the way
they operate daily business transaction.
Non Financial Measures to Support the Validity of these Problem
There has to be a driven force that
will make employees work to their company expectation.The relationship between
the management and the employees at Rogers lnc has to be improved. The company
has the obligation to advice their employees to understand ethical values at
workplace and how to treat customers with respect. Most of the employees at
Rogers lnc do not understand their job description especially employees at
call-centre department, they talk to customer in a very rude way.
The Alternative Solutions to the Problem Facing Rogers Inc
At this stage, l will focus on one
of the problems facing Rogers Inc that is the Call-Center department.
The call-center department is the
face of customer relationship management at Rogers lnc,they are responsible to
talk and view comments from customers everyday that is the reason this area is
crucial for me to review and find a lasting solution that will help the organization
to grow. The management needs to put into consideration decision making process
to deliver effective result that will benefit all stakeholders and employees “
Decision making is a constant process in business,typically,several
alternatives are available to the individuals in charge of making the decision
“(Freema,2000). The decision strategies I will analyze in this paper will be
based on three categories.
Do nothing at Call-Center will be
the first alternative situation which does not actually help the organization. It
has no positive contribution to the company. In this case, the employees at
call-center still operate business at their old way of doing things by putting
customer on hold, long waiting time and rude behaviour toward customers.
The second alternative solution
will be hiring more employees to the call-center but it is less expensive in
cost than outsourcing the call-center. The timely delivery is important because
the old employees at the call-center will have a bad influence on the newly hired
employees by not working hard and that will eventually affect the productivity
of the company. If we increase the number of employees at call-center it will
only make a minimal contribution to the efficiency of the company.
The last alternative solution will
be outsourcing the call center department to a reputable company that has the
best customer relationship management track record in the country. The
advantage in this case is huge because outsourcing this department would bring
in the most revenue in millions of dollars but the cost of outsourcing is high.
The return on investment is really high that stakeholders will be happy to
invest more in the organization.
The PAYOFF TABLE FOR THE ENHANCEMENT OF CALL CENTER AT ROGERS INC SHOWN
BELOW
(PAYOFFS IN MILLIONS $)
STATE OF NATURE
|
Decision Alternative
|
High Volume Call
Demand s1
|
Low Volume Call
Demand s 2
|
|
Do nothing,d1
|
10
|
8
|
|
Hire more customer service personnel,d2
|
15
|
4
|
|
Outsource call center,d3
|
27
|
-12
|
The Decision Tree for the Enhancement of
Call Center at Rogers Inc
|
2
|
Do nothing d1 Low Volume S2 8 million dollars
|
1
|
|
3
|
|
4
|
Outsource call center
Low
Volume s2 -12 million dollars
The decision tree was derived from
the payoff table to make the best decision alternative in achieving corporate
goals. The decision trees consist of decision points (usually represented as
squares) and chance points (Circles). Trees are read from left to right, but are
calculated from right to left as shown in the diagram above. “ The decision
trees are pictorial illustrations of all possible relationships,alternatives
and outcomes on a given decisions”(Clark,2010). The methodology of using
decision tree is enormous because it engineered two functions in an
organization, which are in form of alternatives to grow business. It helps the
company to maximize profit and minimize cost. Decision tree looks at the larger
picture and root cause of the financial failure of the organization and that
will enable the management to make decision that will be in the interest of the
stakeholder and the employees. The sequence of decision making depends on three
criteria which are states of nature, payoffs and probabilities.
Conclusion
The evaluation of problems facing
the poor performance of call-center department at Rogers lnc has given me the
opportunity to use decision tree and payoff techniques to solve the problem. Performance
management at Rogers lnc has suffered greatly due to mismanagement of human
resources and financial resources at all level of the organization” Effective
performance management system requires employees and supervisor to work
together to set performance expectations,review results,assess organizational
and individual needs and plan for the future”(Mello,2008.p444).The proper
implementation of performance management will allow management to use decision
tree and payoff tools effectively.
With a closer look at payoff table,
we can conclude that company revenue has increased from 10 million dollars to
27 million dollars due to the implementation of decision tree and payoff
techniques and that makes a significant improvement on the organization.
References
Clark,D.A.(2010).Use of Decision
Trees Helps with Decision-Making.Fertility Weekly.Retrieved from: http://web.ebscohost.com.lib.kaplan.edu/ehost
Freeman,L.N.(2000). How to use a
decision tree to assess your options,Opthamology Times,Vol.25.Issues
16.Retrieved from: http://web.ebscohost.com.lib.kaplan.edu/ehost
Jackson, S., Sawyer, Anderson, D., R. & Sweeney, D. (2008). Managerial
Accounting and Statistics. Mason, Ohio. Cengage Learning.
Mello, J.A.
(2008). Strategic Human Resource Management. Mason,Ohio: South-Western Cengage
Learning
Zaccaro,S.J & George,M.U.(2001).Strategic
decision-making models of executive leadership: Conceptual review and
evaluation. Retrieved from:http://web.ebscohost.com.lib.kaplan.edu/ehost
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