Cadet Uniform

Service
Background

T
he idea such as total quality management, reengineering, and focusing
on core compensation have all been applied to the issue of service
delivery, during the period of 1990s which was both real and imagined,
a period of service revolution. Managers eagerly strived to guide their
companies and their employees towards the rewards, which to be realized
through the application of total quality service. But more often than not, this
goal has been deceptive. It takes far more than a futurist person in charge or
strength of mind on the road to excellence to constantly carry outstanding
service. Cadet Uniform Services Ltd. of Toronto, Canada, uphold total quality
service in the all stages of its organization and to maintain this total quality
services a shared approach between employer, employee, and customer is
always there. Cadet was the best in following total quality services in the
industry and that’s why they were able to establish the impression of total
quality service in the mind of its employees. Cadet was honored with an
immensely prominent award which is the Canadian equivalent of the
Baldridge Award in 1993. Among five companies cadet was rewarded this
prize which is a Certificate of Merit in the Awards for Business Excellence.

Cadet was the great user of total quality management and reengineering.

The Overview of Total Quality Management and how it

was Used by Cadet

Total quality management is management approaches that initiated in the

1950's and has progressively become further accepted since the early 1980's.
Total Quality is an explanation of the culture, attitude and organization of a
corporation that endeavors to provide customers with products and services
that convince their requirements. The culture requires quality in all features of
the company's action, with processes being done right the first time and
defects and waste wiped out from operations.

There is no formula for organization success; however, there are a number of

great TQM models that organizations can use. These comprise the Deming
Application Prize, the Malcolm Baldrige Criteria for Performance Excellence,
the European Foundation for Quality Management, and the ISO quality
management standards. Any organization that wants to improve its
performance would be well served by selecting one of these models and
conducting a self-assessment. Cadet can be a great example of following
such model.

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The model begins with understanding
customer needs. TQM organizations have processes that incessantly collect,
examine, and act on customer information. Actions are often comprehensive
to understanding competitor's clients. Developing a close understanding of
customer needs allows TQM organizations to forecast potential customer
behavior.

TQM organizations such as Cadet put together customer knowledge with

other information and use the preparation process to arrange action
throughout the organization to manage day to day actions and accomplish
future goals. Plans are assessment at periodic hiatus and adjusted as
essential. The planning procedure is the glue that holds mutually all TQM
activity.

TQM organizations understand that customers will only be satisfied if they

consistently receive products and services that meet their needs, are
delivered when expected, and are priced for value. TQM organizations use
the techniques of process management to develop cost-controlled processes
that are stable and capable of meeting customer expectations. We will
discuss how Cadet is satisfying its customers by controlling product quality
and price value later in this Background segment.

TQM organizations also understand that exceptional performance today may

be unacceptable performance in the future so they use the concepts of
process improvement to achieve both penetrate gains and incremental
continuous improvement.

The final element of the TQM model is total participation. TQM organizations
understand that all work is performed through people. This begins with
leadership. In TQM organizations, top management takes personal
responsibility for implementing, nurturing, and refining all TQM activities. They
make sure people are properly trained, capable, and actively participate in
achieving organizational success. Management and employees work together
to create an empowered environment where people are valued. Cadet used
the entire element in the above very effectively. As a result they could provide
such awesome quality service to their clients and able to meet such high profit
margin.

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Some Steps followed by cadet which made them

prominent in business

Firstly, gaining a clear picture of customers' needs. Carrying those needs

together as a "Quality of Design" and reflecting them in diagrams and
specifications. Faithfully building-in this quality of design in the workplace, and
evaluating it as a "Quality of Conformance". After completion, applying quality
pledge activities through after-sales service

The Steps of Cadet’s Activity can be expressed In a

Figure Which Is Absolutely a Total Quality Service:

TQM Activity

Promoting Customer Service Activities

Promoting Vision Management

Promoting Quality Assurance Activities

Cadet heavily applied Reengineering process. Reengineering is the

redesigning of business to achieve improvements in such measures of
performance as cost, quality service and speed.

The History of Cadet

Cadet was the successful launderer. The business was started in Toronto in
1974 by Quentin Wahl as a spin-off of his father’s dry cleaning business.
There were 275 employees. Cadet serves it’s customer with multiple services
such as picking up, cleaning, and delivering customer uniforms as well as
providing unique inventory control and management services. These Services
was provided by the Customer Service Representatives (CSRs). The CSRs
had the complete power and can take action as individual entrepreneur.

Cadet’s main view was to serve the total quality service. Wahl had
encouraged his employees about the total quality service and could able to
inspire his employee’s towards the common goal. Whal believed that doing

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the job right the first time, every time should
be appreciated.
As a result, Cadet Uniform Services limed became the third largest uniform
services company in Canada with annual revenue of US$30 million and an
average annual growth rate of 20% over the past decade in the year 1995.
They were the most productive and efficient in the industry.

Cadet charged its customers 5% lower than those the company charged in
1985. It annually serves (picks up, cleans, processes, and returns) seven
million uniforms for 3,500 customers. As the price was low and the service
was very efficient; so, everybody liked to enjoy its service. So, profit margins
exceed industry norms. Cadet enjoys 8-10% lower per-unit costs than
competitors, and wages are at least 20% higher and, sometimes, double
industry averages. This endless dedication to quality and efficiency has led to
an amazing customer retention rate of more than 99%. Cadet has considered
exporting its special brand of service to the United States recently.

The Leading Grounds behind Cadet’s Booming expansion:

The main reasons behind Cadet’s enormous success are their focus on
quality, service and an unapologetic dedication to employee entrepreneurship.

“Service” The Wellspring of Corporate Reformation

Cadet’s foremost focus was on service of the customers. Traditional

managerial control of employees is absent from Cadet. Control like how best
to serve their customers is given to employees. There are the entrepreneurial
natures of the CSRs as well as in the strategic priority placed on serving the
customers. According to Wahl and his Executive Vice president Arnold
Gedmintas Cadet is separate from other companies within the industry is
based on the understanding about the customer’s need.

“Quality” The Fountain of Corporate Reformation

Quality is the most significant constituent for the corporate reformation,

development and accomplishment. Every step in the pickup, cleaning, and
delivery process is examined by CSRs. Customers enjoys 100% error free
deliveries and it’s a pride of CSRs that they able to achieve the main
corporate goal, the total quality service. Gedmintas argued that the nucleus of
Cadet’s corporate culture is their service quality.

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“Employee Entrepreneurship” The Source of

Corporate Improvement

Cadet gave extra significance in Employee entrepreneurship. It viewed as the

hallmark of Cadet’s corporate philosophy. This was not just a blank
assurance of employee empowerment but a real promise towards reallocating
power and decision-making. A CSR himself was the major decider of how big
his own paycheck was going to be. The more satisfied the customers are and
the more the CRS can retain customers, the more money he could generate.
Approximately 60% of a CSR’s pay was based on customer retention levels,
and another30% on ratings given directly by customers. Customer feedback
was the important factor that determined whether a CSR thrived or botched.

The commitment to service, quality, and employee entrepreneurship

represented more than a public relations strategy. It was the facilitator to a
way of doing business and a way of leading business and it could make the
cadet the most flourishing company in the entire industry.

Cadet’s pledge of High Quality Standards through Selective

Admission to a Painstaking Training Process:
Cadet employees were stimulated with dedication through focused hiring,
widespread training and development programs, and clearly expressed quality
standards.

Hiring Procedure followed by Cadet Uniform Services

Ltd

The hiring process of Cadet was an important aspect for Cadet Uniform
Services Ltd. The reason behind it was if the quality unable to meet its
standard the whole corporate mission would be haphazard. So, the Potential
CSRs were examined carefully by not only the traditional human resource
manager or a line manager but also the team members. Team members were
accountable for scrutinizing the qualifications and intrinsic assurance to
service and excellence of all employees to be hired. This method was utilized
because Cadet’s current CSRs understood more fully the level of assurance
necessary to preserve the company’s quality and service standards than
managers who were directly or indirectly connected to the process. It
toughened the culture of employee entrepreneurship and teamwork.

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Training and Development Procedure followed by

Cadet Uniform Services Ltd

All the employees, both established and newly hired had sufficient opportunity
to acquire diversified training and learn new skills available to serve the
customers in enhanced ways. Educational centers offered updated materials
on quality and services issues. The company encourages the CSRs to seek
education from outside resource and reimbursed such educational pursuits.
The condition to carry on the education was that the CSRs should share their
newly obtained knowledge with other employees and narrate to them how the
experience could be favorable in their work. Cadet employees also had the
opportunity to train in other areas of the business that they were interested
dependent upon being able to find someone willing to trade positions. It
provides the employees greater job flexibility, variety, and personal (as well as
professional) growth opportunities, that means, as long as they could find
someone to replace them, they could exchange work positions with them.
General understanding of the company and the requirements for success in
this industry is increased through these procedures.

A Quality Awareness Board, that included employees from miscellaneous

parts of business, as well as customers, both oriented new-hires about the
company’s quality focus and provided an ongoing “process mapping” exercise
on how to enhance the effectiveness and efficiency of day to day operations.
Significant increase in sales was created through this process.

Error Cause Removal (ECR) forms were exercised to illustrate the

understanding various level of operational efficiency. To identify the
inefficiency in the total service delivery process were exercised by the CSRs
and other employees by using the ECR forms and this ability was the direct
derivative of employee’s training and development activities. The authority of
Cadet was cautious in posting the weekly figures of sales, cost and growth, in
the bulletin board. CSRs team members were encouraged for a meeting with
Wahl about the monthly operation review.

As Cadet had highly trained and developed workforce its sales revenue is
much higher than other firms of the industry. Each CSRs are accountable for
generating a weekly sales revenue of $ 17,000 for the company. Industry
average was $7000 to $8000 per month. So, the weekly sales were above the
industry average. This high productivity level enabled the cadet employees to
get higher compensation. Although it is not unusual for a CSRs of cadet to
earn US $ 53,000 per year, whereas the drivers of competing companies are
earning $26,000 per year. Wahl said that, at almost any business, the lowest

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paid, least-recognized employees and the
ones with the highest turnover rates are the people who meet the customer.

Quality Standards and Innovation maintained by Cadet

Uniform Services Ltd

One thing that cadet did that is made customers conscious about the high
standard of quality was required of CSRs in the early customer visit. A 47-step
checklist guaranteed that a customized, quality-focused program was created
for each individual customer. This focus created a standard for the CSR and
high expectations for the customer.

Cadet’s “unconditional service guarantee” demonstrated the quality they

provided. This was somewhat enabled because of an exclusive process
patented by Cadet. Heat-sealed bar codes on each uniform were used to
monitor the speed and control of uniforms through the system. As a uniform
passed through a variety of stages in the process, it was scanned so that
customers and CSRs alike could be aware of the uniform’s progress through
delivery, cleaning, repairing, replacing, and returning. Cadet processed
400,000 pieces of clothing per week with only 4-6 uniforms misplaced with
this system. This process was soon being improved. A radio chip was
intended to develop by Cadet that could be inserted in each uniform so that
the uniform could more quickly speed through an assortment of stations
without a bar code needing to be located appropriately for scanning. This new
process would be a total automated cleaning system.

Rewards that is linked with Total Quality Service:

Wahl stated that, Cadet’s aim is to place systems that allow people to be
motivated and utilize fully their abilities. He was trying to make it possible to
do their jobs efficiently. They responded by doing their job better than any one
else in the industry. In fact, the management of Cadet wants to fulfill the basic
needs of the employees in a proper way so that they can concentrate on their
work properly. Although money is the main motivating tools and other types of
motivation among the employees came through both monetary and non-
monetary rewards. To maintain the quality service Cadet is careful in
compensating their employees through both monetary and non-monetary
rewards.

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Monetary Rewards for Total Quality Service

A CSR’s pay was directly attached to the satisfaction level of individual

customers. If a customer was pleased with the service, a CSR was rewarded
with increased income and bonuses and other compensation. If the customer
was disgruntled or the CSR could not able to retain the customer, he could
expect equal negative penalty. This direct relationship between customer
satisfaction and pay motivated the employees tremendously. Monetary
rewards were seemed to be useful for the employees of Cadet though we
know that it is money is not the only motivator now a day. There is no other
way for Cadet’s competitors to take away their employees with more than the
amount of salary that they were getting. It was really worthy maintaining such
a pay system.

Non-Monetary Rewards for Total Quality Service

Many non-monetary rewards can also motivate the employees rather than
money. Cadet did not underestimate the power of motivation through non-
monetary means.

The non-monetary rewards that are provided as motivational

tools by Cadet are:

 Quality Kids Day

 Zero Defects Day

 Freedom to Do One’s job as one best sees fit

 Awards received by the company from its customers displayed in the

cafeteria

Quality Kids Day:

This provided employees the opportunity to share the idea of quality with their
children. This helped them to become more social and friendly. Quality
awards received by the company from its customers were displayed in the
cafeteria and acted as a symbol of pride for team members. These awards
were an honor to all team members of the organization and acted as tools for
reinforcing the company’s goals and culture.

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Zero Defects Day:

In this non-monetary reward policy the plant closed early for a barbecue on
the days the company met its goals ahead of schedule. It worked as a positive
reinforcement. It proved to be powerful motivational tools.

Freedom to Do One’s job as one best sees fit:

This provided freedom in choosing the way of work. It gave employees

fabulous inspiration. He or she then can able to use own inventiveness and
extra energy to do the job and give the best shot for the improvement of the
organization.

Awards received by the company from its customers

displayed in the cafeteria:

Quality awards received by the company from its customers were displayed in
the cafeteria and acted as a symbol of pride for team members. These
awards were an honor to all team members of the organization and acted as
tools for reinforcing the company’s goals and culture. This was biggest benefit
of the recognition of these quality awards.

The unique and sustaining quality of the company’s incentives were not the
individual tools utilized but rather the combination and interrelatedness of the
tools. The company had a culture that truly supported employee motivation
and was not doing this as just an eye wash. The ingredients of Cadet’s culture
and motivational tools were mutually supportive. Actually their organizational
culture was strong performance based pay system.

Most company will often say that an employee’s compensation is dependent

on how well one’s customer is served. But there was no absolute freedom on
how to serve the customer is given to the employee. Similarly, an employee
may be given what appears to be great liberty in customer service yet be
judged predominantly, if not exclusively, on how an employer views the
effectiveness of an employee’s service abilities. Enhanced job performance its
consequences acted in unison rather than in conflict. Cadet gave CSRs
remarkable autonomy on how best to serve the customer.

Cadet’s Challenge for the Future on Their Way of

Doing Business:

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Cadet Uniform Services was quickly expanding throughout Canada and
possibly into North America. Challenge that Wahl faced for Cadet Uniform
Services Ltd was transfer the culture and focus on total quality service
through an ever-expanding organization. Wahl had questions in mind that
was, he need to know how will he transfer the culture of total quality service
throughout an organization that is becoming bigger every day? Will he be able
to maintain the level of workforce motivation that brought Cadet its success?
And another question is Could Cadet’s organizational culture and reward
system will able to motivate CSRs as competition in the industry will keep
going.

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Theme

T
he Cadet Uniform Service had not been following the traditional
management system rather control is given to employees to act as an
entrepreneur. There is too much delegation of authority on Customer
Service Representatives (CSR’s). So, that may result in lack of control over
CSR’s. If Cadet goes for expansion in North America- their current personnel
director, recruiter and above all a keen-observer like Nada Cian will not be
present there regularly who, scrutinizes every aspect of an employee while
recruiting. On the other hand, Cadet is the third largest uniform Service
Company in Canada; so, when they will expand to North America they might
not earn as much profits that they do in Canada currently. Cadet has a large
diversified workforce of 46 different ethnic groups. It is not very easy to
manage a diversified workforce from so many different groups because each
group has its own values and norms that are way different from others. Since
the payment of a CSR is directly tied to the satisfaction level of individual
customer. The dissatisfaction level of individual customers may lead to shrink
in the salary amount. Another problem that has been observed in this extract
concerning Cadet is the very lengthy 47-step checklist for a quality focus
program by customers. As a result complete cooperation by customers may
not be available.

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Main Issue

W
hat strategies Cadet Uniform Service should obtain to be
competitive in the market that will enable them to ensure total quality
service by adjusting with the new culture of global market and align
its new employees with the positive traditions of the company?

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SWOT analysis

S
WOT analysis plays a significant part in any company. Any company
has some internal strengths and weaknesses, with some external
opportunities and threats. Internal factors can be better controlled than
external factor as companies do not have any control over it. To survive in the
changing environment any company needs to know or be aware of what are
its strengths, weaknesses, opportunities and threats so that it take
advantages of its strengths and opportunities to eliminate or decrease its
weaknesses and threats. In short, SWOT analysis helps to identify what are
the capabilities and capacities of a company. Given below are the SWOT
analyses of Iridium.

SWOT analysis plays a significant part in any company. Any company has
some internal strengths and weaknesses, with some external opportunities
and threats. Internal factors can be better controlled than external factor as
companies do not have any control over it. To survive in the changing
environment any company needs to know or be aware of what are its
strengths, weaknesses, opportunities and threats so that it take advantages of
its strengths and opportunities to eliminate or decrease its weaknesses and

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threats. In short, SWOT analysis helps to
identify what are the capabilities and capacities of a company.
Strength: A company should be aware of its core capabilities and sources of
competitive advantages. Core capabilities are the critical skills and processes
that an organization executes so well that its reputation builds around it.

Weaknesses: In addition to knowing its strengths, an organization must

recognize its limitations. Whether limited by a poorly equipped production
facility or a sales force that merely quotes prices and delivery dates, a
business that acknowledge its weaknesses forces mangers to assess their
processes and systems.

Opportunities: External and internal environments present both driving and

restraining forces. Opportunities may occur suddenly. With the past pace of
globalization and technology changes, what may initially present itself as an
opportunity may become a threat if organizational responsiveness is too slow
or not well planned.

Threats: Threats are negative external environmental factors which

influences an organization’s decision. External factors are not controlled by
the organization and to survive every organization needs to be very alert
about its threats and how they can overcome this problem. Organizations
should be proactive rather than reactive and should be aware of what are the
competitors’ moves and should take necessary action in advance to face
those moves.

The strengths, weaknesses, opportunities and threats regarding this case

“Cadet Uniform Services: Cleaning Up In the Cleaning Business” are
discussed as follows…

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Strengths
Lowest per unit cost, lowest service cost, higher wage
rate, high revenue and quality standard services than
its competitor make the cadet Uniform Services
Limited as market leader.

I
n 1995 Cadet Uniform Services Ltd. of Toronto, Canada was the
largest uniform service company in Toronto Canada. Cadet with
much saved up cost, high revenue, and quality standard services
have been successfully been able to maintain its position as the market
leader. The huge numbers of employees were helping them to get more and
more market shares and the gain profit. So the huge number of outlets and
employees acted as their strength in gaining more market share and profit
earning. Cadet annually picks up, cleans, processes, and returns seven
million uniforms for 3,500 customers at prices which are 5% lower than those
the company charged in 1985. At the same time, profit margins exceed
industry norms. Cadet enjoys 8-10% lower per-unit costs than competitors,
and wages are at least 20% higher and, oftentimes, double. They had annual
revenue of $30 million and an average annual growth rate of 20% over the
last ten years. Cadet routinely accounts for over $17000 per week in sales
revenue for the organization. It also received the award for business
excellence in the year 1993. In 1995 it became the third largest uniform
service provider company in Canada with annual revenue of $30 million and
an average annual growth rate of 20% over a decade or so. Some reasons of
being market leader are giving below.

Cadet is the market leader in the Canadian uniform

services industry

A cadet uniform service has become the market leader and has been able to
successfully maintain its position at the top due to its quality service
standards, high revenue generation and low production costs. Because of its
quality in service, it also received the award for business excellence in the
year 1993. In 1995 it became the third largest uniform service provider
company in Canada.

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High sales revenue generation

The Cadet is not only the market leaders but also has taken up the position
for generating the highest sales revenue per week. Each CSR at Cadet
routinely accounted for over $17000 per week in sales revenue for the
company. This was considerably above the industry average of $7000 to
$8000 per month in sales revenue. Comparing to the industry average even
the cadets generate almost double. The other competitors earn approximately
$2000 per week while the Cadets have sales revenue of $17,000 per week.

Lowest per unit cost in the industry

Cadet enjoys the opportunity of being capable to uphold a lower per unit cost
than its competitors. In fact it has an advantage of 8% to 10% lower per unit
cost than other cleaning up services. Explanation that can be accounted for
this competitive frame over its competitors is the high tech method used to
take out their simplest of services. Cadet annually picks up, cleans,
processes, and returns seven million uniforms for 3,500 customers at prices
which are 5% lower than those the company charged in 1985. As a result
cleaning up services at Cadet is far lower than other ones in the industry,
which are not so well equipped with technology.

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Wages 20 % higher and most of the time is double than

the industry average

Services that gave to customer were provided by Customer Service

Representatives (CSRs) who, while employees of the company, were given
complete authority to proceed as individual entrepreneurs. Cadet has been
experience 20% upper wages than the industry standard and at times it is
even double the industry standard. Cadet’s commitment to employee
progress saw great profits. Each CSR at Cadet routinely accounted for over
$17,000 per week in sales revenue for the company. This was considerably
above the industry average of $7,000 to $8,000 per month in sales revenue.
This type of productivity also translated into considerably higher
compensation for Cadet Employees. With much hard work and enough
dedication to maintaining high quality service employees, a CSR can earn
approximately U.S. $53000; whereas the delivery workers of other companies
are earning $26,000 annually.

Cadet’s management is committed to total quality

service, employee inspiration and empowerment and
seems for ways in which to actually inspire that attitude
all through the organization

Management of a company is fundamental for its accomplishment. The

efficiency of the function of the company is extremely linked to the acceptable
management structure. Through skill management system a company can
able to reach the goal without enough resources. Cadet controls with a
progressive manner to provide effectual result to satisfy the customer’s needs,
through its products and services of uncompromising quality. The
management of Cadet commits itself to quality as the prime consideration in
all its business decisions. All employees of Cadet must follow documented
procedures to ensure compliance with quality standards. The pool of human
resources of the company will be developed to their full potential and
harnessed through regular training and their participation on seeking
continuous improvement of work methods.

At Cadet they focus more on quality than anything else. They make their
CSRs undergo continuous training and development program to serve the
customers efficiently. The issue of quality service delivery is being transferred
through out the entire company. That is all the CSRs are being inspired to
work to promote quality service at Cadet.

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Every person at Cadet believes in sharing the same

mindset, share a common approach and way of
thinking that bring together them and works for the
promote of the whole company

Every Cadet employee is concerned with the wellbeing of the company and is
motivated enough to work towards preservation of the company’s interests. At
the heart of Cadet’s corporate culture is their belief in total quality service.
This is a way of life that every employee can relate to. Everyone shares a
common understanding of the principles of total quality service and
recognizes the importance of doing the work right the first time, every time.
The corporate culture of continuous improvement and employee
entrepreneurship is ingrained in every Cadet employee. These motivational
practices encourage Cadet employees to become more productive and
efficient which results in higher profit margins for Cadet.

Cadet believes in strictly empowering their CSRs by

generous them occupied autonomy concerning their
work

Human labors are always the largest asset for any particular company. It is
the people who are accountable for bringing reputation to the company or, in
many cases, for causing negative impacts as well. At Cadet, their pool of
human labor are developed to their full potential and attached through
standard guidance and contribution while looking for continuous enhancement
of work methods.

Cadet believes in letting their employees work as individual entrepreneurs,

through delegation of authority. As a result the CSRs feel that they are an
important part of the organization and hence they work more and share a
sense of responsibility. This leads enhanced job performance and job
satisfaction which in turn leads to better decision-making concerning the
company and elevated profit levels.

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Cadet’s corporate vision was one that aimed to bring

peace and prosperity to all by providing everyone with
good quality service

Mission statement of this company was- “to contribute to the well

being of mankind by providing reasonably services in sufficient
quantities to achieve peace, happiness and prosperity for all.”
This statement means that this giant company tries to continue its
profitable business in the way that is perfectly peaceful and
ethically fair to all the people of the world. And this position is only
possible when it can ensure the wonderful management system,
practice and well-maintained style for its own.
Cadet is the company which is considered as launders
laundry to provide a large amount of services; picking
up, Cleaning, and delivering customer uniforms as well
as providing distinctive inventory control and
management services to its customers

Cadet Uniform Services LTD provided a large amount of services to its large
amount of customers. The services were picking up, cleaning, and delivering
customer uniforms as well as providing unique inventory control and
management services. These services were provided by Customer Service
Representatives (CSRs). Their first priority was serving the customer.
Traditional managerial control of employees is absent from Cadet; rather,
control is given to employees on how best to serve their customers. The
slogan that makes them different from other company is “Our understanding
of our customers’ needs.”

Cadet provides employees with superior job flexibility,

which helps motivate them and increase their
efficiency and effectiveness

At Cadet, employees have the freedom to design their own routes and
manage their own accounts. They can do this according to the time that they
see fit. At other times they are free to pursue education or other things that
are important to them. This kind of flexibility gave Cadet employees immense
motivation because no other company provided such good working conditions
and also paid so much.

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Cadet practiced true commitment to the reallocation of

power and decision making to promotes employee
involvement and entrepreneurship which in turn helps
them gain more profits

The corporate philosophy of cadets promotes employee

entrepreneurship. This allows the employees to be more focused
and committed towards relocating their power and decision-
making. Therefore the amount of income generated by the
employees was directly tied to the number of customers they can
retain. This particular philosophy of Cadets was springboard to do
business and leading the business.

Cadet’s business philosophy was always geared to the

future and to becoming the top player in the industry

All companies must have a goal and set standard to have the best
position in the market. The philosophy of Cadet was to be a low
cost, integrated manufacturer, which made it the best company.
This company’s philosophy was outstanding as because it was
consistently trying to cut its price and wanted profits in the long
run, rather than seeking high profit by raising the price. Another
significance of this company was setting up its own distribution
networks and direct connections with the customers.

Cadet has a unique selection Procedure that involves

CSRs as well as management personnel and ensures
that the right kinds of people are employed in the
organization

The employees are hired through focused hiring, which include team
members in addition to the traditional human resource manager. The training
procedures also include self-development procedures and building
commitment. The employees so trained provided choice for being trained in
other areas. The understanding of the efficiency levels also enhances the
activity of the employees hired to rectify day-to-day problems. The team
members were also asked to join the monthly operational meetings to get
sufficient feedback on the training process. The extensive way of selection
helps to maintain the company’s quality and service standards. In addition to

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this the returns for the company also
experienced tremendous growth. This type of productivity boost also leads to
higher compensation for the employees and thereby employees become more
dedicated and committed.

Cadet gave opportunities to new hires and established

CSRs to become more skilled at and share new
expertise and knowledge with other employees through
training, boost the employee’s talent to provide the best
service to their customer

Cadet gave the opportunity to its new hires and established employees to
become more skilled that could significantly enhance their ability to serve their
customers. Through education centre they got updated materials on quality
and service issues. The company also encouraged CSRs to adopt the
knowledge from outside education. The only condition to enduring education
was that CSRs must share their newly acquired knowledge with other
employees through a summary of how the experience could be beneficial to
one’s work. In addition, employees had the option of being trained in other
areas of the business, dependent upon being able to find someone willing to
trade positions. This provided employees greater job flexibility, variety, and
personal (as well as professional) growth opportunities. It also increased the
general understanding of the company.

Cadet had a Quality Awareness Board (comprised of

employees from different parts of the business as well
as customers) who oriented newly hired employees

A Quality Awareness Board (comprised of employees from different parts of

the business, as well as customers) both oriented new-hires to the company’s
quality focus and provided an ongoing “process mapping” exercise on how to
best increase the effectiveness and efficiency of day-to-day operations. This
process mapping was credited with significant increases in sales.

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Cadet had special forms called Error Cause Removal

(ECR) forms that were used to identify inefficiencies in
the delivery process so that they could be rectified
immediately

The focus on understanding various levels of operational efficiency is

illustrated through the use of Error Cause Removal (ECR) forms. ECR forms
were routinely used by CSRs and other employees to identify an inefficiency
in the total service delivery process. Such an ability to identify and rectify a
problem was the direct offshoot of the employee’s training and development
activities.

Cadet made use of a number of innovative ideas in the

workplace which helped increase their productivity

CSR tries to maintain a high standard of quality in communicating with the

customers. They developed a 47- step checklist for quality maintenance for
each individual customer. The quality so maintained made the customers
expectations high from the service. They made the various stations very swift
for the customers to get the uniforms early. The innovations made the Cadets
a better place for delivering “unconditional service”

Cadet was a dedicated to the principles of Total quality

management used those ideas at every step of the way

At Cadet they focus more on quality than anything else. They make their
CSRs undergo continuous training and development program to serve the
customers efficiently. The issue of quality service delivery is being transferred
through out the entire company. That is all the CSRs are being motivated to
work to promote quality service at Cadet.

Cadet provides amazing services & 100% error free

service delivery

Cadets deliver system has been highly appreciated by the customers, as it is

100% error free. Each and Every step starting from pickup, cleaning and the
delivery process are all examined by the CSRs. The CSRs while checking
also adds any necessary item missing. They work for continuous

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improvement that they believe to be their
corporate culture. These employees accompany the customers from
department to department until they find what they are looking for. Such
services are exceptional indeed and very much unique. Continuous
improvement is what accounts for growth and success of the organization.

Cadet uses high, end technology which makes them the

market leader, which is not used by any other
company in the industry to increase their efficiency
and productivity

Today we are in modern era. To establish as a market leader company needs

to use high technology. Technology is the most important factor now a day for
the greater productivity and more output, which help every organization to
serve successfully with in the competitive market in international business.
Technology is involved in all organizational activities and the rapid rate of
technological change makes technological change a significant factor in
almost every organizational innovation. Technological change offers both an
opportunity and a threat. On the one hand, it helps create new product
opportunities that manager and their organization can exploit.

The success of rapidly growing company is based on the frequent change of

the technology to make the operation effective. It is always concerned about
bringing in best technologies, which are needed to produce the best quality
products that the market demands. Without fast change, the company would
not be able to keep up with the ever-changing environment In the long run. At
Cadet they are able to provide unconditional service guarantee because of
the technology that they use at cadet. This technological know how was a
patented right by cadet. They used the heat sealed bar codes, the scanning
process so that the CSRs and the customers were both aware of the uniforms
progress through delivery, cleaning, repairing, replacement and returning.

Increased profit levels lead to increased levels of

confidence among employees which in turn leads to
high morale and elevated productivity

The people working in the organization gain more confidence because of the
profit .As a result of profit increase, the employees might even get added
incentives on their compensation package. And this also acts as a
motivational factor to help them exert better performance on their job.

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Cadet’s planned monetary and
non-monetary rewards are in a distinctive manner that
stimulates employees and motivates them to give their
best to the job

Financial resources can significantly affect an organization’s competitive

advantage. An organization that has the ability to generate internal funds able
to convert these funds into other assets. Cadet uses it financial resources
very efficiently when it comes to providing compensation to its employees. At
cadet, compensation depends directly upon how long a CSR can retain
his/her customers. That is the satisfaction level of a customer determines an
employees pay level .If a customer was well satisfied a CSR was rewarded
with increased income and bonuses.

Apart from this monetary reward, other forms of non-monetary rewards

include Quality kids’ day and zero defects day. Zero defects day was when
employees were able to meet the organizational objectives way ahead of time
and the plant closed early that day so that the employees could have a
barbecue. Non-monetary rewards such as the quality kids’ day gave
employees the opportunity to get to share the idea of quality with their
children. Other non-monetary rewards include the display of quality awards
received by the company and the display of company growth reports on
company bulletin boards. The sight of the awards acted as a symbol of pride
and a strong motivational tool for the employees. The growth reports kept the
employees posted on the company’s success and profit levels. They could
see those figures and feel good about themselves thinking that in many ways,
they were the ones responsible for those high profit figures. This made them
feel like they were an integral part of the company and gave them a feeling of
fulfillment.

CSRs pay was directly tie with the satisfaction level of

individual customer for that reason they makes the
customer its number one priority

All salespeople at the Cadet are always ready to do anything that would
please the customers. Because CSRs pay was directly tied to the
satisfaction level of individual customers. If a customer was
satisfied a CSR was rewarded with increased income and
bonuses. Such facilities definitely attract the potential buyers and
Cadet now has more and more loyal customers.

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The employees at Cadet are given a lot of recognition

by the management and are extremely organized

Cadet considers their employees as partners, not interchangeable parts

of production. So in the recession time employment is continued
as the employees have the interest in the company’s gain. The
most important association of the employees began from the very
beginning of the company, and it is continued through the ups
and downs with the company’s good time and bad time. Its
employees have to present in every “morning meeting” and they
have to go through the whole process in the early morning and
before any job is started.

It brings the job satisfaction and the commitment for the employees.
Moreover, for this purpose, each employee is recognized
individually in this company. In addition to the job related tasks,
these employees have the opportunities to be a part in the sports
teams entitled by the organization. Much emphasis is given to
company awards and to the performance of those teams
competing with other companies. Therefore they feel for the
company as their own.

Cadet’s employees always lived up to the company’s

high expectations of them

Hard-working employees are hired in the first place at Cadet and they are left
to do what they do best. When these people apply elsewhere there is
expectation on them because they want to work very hard and wish for a good
job.

Cadet has gained immense goodwill, This helps to

retain customers and also gain new ones. This element
of goodwill also acts as a positive motivational tool for
employees

Cadet employees feel the effect of its goodwill everywhere they go. People
are impressed when they get to know where the employee actually works.
The positive reaction from outside people gives the employees a sense of

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pride due to their employment in Cadet. It is
the immense popularity of Cadet that has always reflected its goodwill.

Weakness
Preferential behavior may be converted into a question,
as workforces are profoundly occupied in the hiring
process

T
he staffing squad for Cadets comprises impending CSR’s. The cadets
believe the CSR’s be aware of the level of pledge to maintain
company’s eminence and service values. The Human features of the
CSR’s are not well thought-out before placing them on the assortment panel.
They might be biased towards any entity and have more penchant to assign
people they know well. The CSR folks were optimistic to seek out education
and compensate the educational pursuits. They were to share their
knowledge with the new employees. During that period some might impress
and can become a liking of the CSR member as the potential.

The biasness of the CSR members is one of the factors to be considered

before introducing them in the selection board. At Cadet, CSRs are
responsible for evaluating and scrutinizing potential employees to see if they
have the required commitment and intrinsic vow to service and quality that is
required for them. As current employees had the power to be a part of the
selection process, they may select members of their family or friends for the
job. These people may not be as well suited for the job as others but still
become a part of the organization thus jeopardizing its level of performance.

Cadet bestows its workers freedom and empowerment

to a great level; they can take pro of it to go well with
their own desires

Employees at Cadet are authorized to act as individual entrepreneurs or

capitalists. This means that they can do no matter what they want to in
regards to the way in which they put up with their occupation. They face
limited margins from the management and are not detained back by usual
administration wheel. Another thing is that the compensation package is not
being equally extended down the line. The philosophies of the cadets offer
employees the ability to practice their authority. As they do not follow the
traditional managerial control the employees are at liberty to practice their
abilities. If the abilities are not such that it helps to satisfy the customers it
might create a negative impression for the Cadets. The too much

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empowerment makes the employees decide
to work and so might create a situation of pig-headedness to work.

Customer preconceived notion in the direction of fussy

human resources may headed for demotivation and
poorer performance heights in other workers

The cadets follow a compensation plan based on how well they hand round
the clientele. The fulfillment of the employees plays an essential role in
influencing whether an employee is performing fine or not. This particular
strategy so followed overlooks the fact of biasness of a particular purchaser or
clientele. This might lead to demotivation in inspiring the quality of work for the
employee. The culture of cadet and the motivational gears are mutually
supportive but consideration of the customer satisfaction sets a draw back for
the employee satisfaction. There is a huge gap between the compensation of
the top executives and the lower employees, the normal workers feel inferior
and not motivated to work competently. The top executive enjoys the cream of
the success where the normal personnel do the real job. As other employees
and executives are not paid according to their contribution, they feel
discriminated and do not search out the chance to work as a superior lineup in
existence of top supervision.

Employees may become overqualified due to the

outside education opportunities that Cadet provides
them with and after that those workers may leave the
organization without sharing the knowledge that they
gained from their education

Cadet vigorously cheers their employees to seek outside education and

reimburses such educational pursuits. Employees may use company funds to
put on degrees from outside and as a result become overqualified for the job.
They may think that they can get a better, maybe even a white collar job,
somewhere else and then leave the company altogether. When those
employees become more educated and experienced then a tendency of being
getting a good option than the existence one.

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Cadet’s high prospect may occasionally confirm to be

frightening for employees

Everyone expects and so does Cadet, but the expectations are very high.
These soaring expectations made by Cadet make it crucial for its employees
because if they cannot meet them then they are fired. Expectations those are
difficult to fulfill, always will demoralize employees if they find them not
potential enough.

The widespread guidance and its expenditure

The employees at the Cadets are recruited after a selective admission and
meticulous training. The employees at the point of hiring are vast in number
and taking into consideration all of them makes the Cadets incur a high cost.
The cost related to the hiring and selection is an additional cost borne by
cadets. At the end of the selection not all individuals are selected and along
with them the cost borne for each. Though the returns for the hired individuals
give tremendous returns but cadets do not consider the cost they had
undertaken during the hiring.

Cadet lacks an organized HR department and relies too

much on CSRs to do HR jobs

The organization is recommended and/or instituted a set of reports that

provide the HR department with the information they need to review
adequately how a particular department is doing. As they show us that they
have a very organized and structured form of training and development plan.
They conducted need assessment for each department. The training
requirement varies from employees to employees, position to position across
departments in terms of types, duration and techniques.

Through this career plan analysis they understand whether the employee is
able to improve the performance and what type of further training is required
for that particular employee. But here we faced some limitations as for the
sake of confidentiality they did not say what type of training they are providing,
how frequently they give training, how much they spend for the training and
development purpose etc. The HR department of any organization is
responsible for the hiring and firing purpose and many inter-related activities.

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The Cadets ignore the importance of such a
department by not placing them for carrying out the hiring and firing activity.
They rather use team members to help in the selection that does not
represent the proper panel for understanding people. The HR department is
an integral part of any organization and ignorance of their importance can
lead to hire an individual not suiting the desired position. The selection
therefore lacks in expertise.

As Cadet’s reward system was based mainly on what

customers thought of the employees, the biased nature
of some customers may put some employees ahead of
others. This would greatly distort the feeling of
camaraderie among fellow employees and affect the
organization’s overall performance

Employee relationship contributes greatly in the organizational success.

Organizations, by definition, require people to work to gather and
communicate with one another. Ideally, the interpersonal relationship should
be productive, cooperative and satisfying. In reality, managers find that they
are not always that way. Almost every working relationship will produce some
degree of conflict across time. Whether the conflicts will be destructive or
constructive depend on the attitudes and skills of the participants. The
employee motivational tools of cadets include rewarding the employees based
on how many customers they can retain. The Customer might judge based on
his personal instincts to rank him, which might include some biased behavior.
The likings and disliking should not be relevant to the reward system as they
have been selected by the CSR after extensive training and the rewards
should not be divided as it demotivates the employs when the reward does
not meet their expectation.

The biasness of Cadet’s recruitment team is not taken

into consideration

The recruitment team for Cadets includes Potential CSR’s. The cadets believe
the CSR’s understand the level of commitment to maintain company’s quality
and service standards. The Human aspects of the CSR’s are not considered
before placing them on the selection panel. They might be biased towards any
individual and have more preference to appoint people they know well. The
CSR individuals were encouraged to seek out education and reimburse the
educational pursuits. They were to share their knowledge with the new
employees. During that period some might impress and can become a liking
of the CSR member as the potential. The biasness of the CSR members is
one of the factors to be considered before placing them in the selection panel.

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Opportunities:
The reputation of the company would help the
company to attract best employees in the job market as
well as loyal customers. It also motivates employees to
stay long time in the company

R
eputation in a company is very important factor. Is consider as an
asset if the organization. Every company tries to maintain their good
reputation in business market. A well reputed company always the first
choice of employees as well as customers. Cadet is a well reputed company
in Canada. In 1993, Cadet was among the five companies awarded a
Certificate of Merit in the Awards for Business Excellence, the Canadian
equivalent of the Baldridge Award and in 1995; Cadet was the third largest
uniform services company in Canada. For this obviously they created a good
impression in business market. Moreover the employees are permitted to take
training in other areas of business if they wanted. It provided the employees
with greater job flexibility, variety and professional growth opportunity this is
the major positive side for this Company to attract prospective employee. The
best candidate of the job market who have good skills, good interpersonal
skills, and hard working ability they easily want to join Cadet Company.
Because the candidates knows that the company maintain good working
environments and other good strategy and business market they have good
name. So they will think in this company they can do their work in very
comfortable and safe way. They don’t need to think about the salary package
or compensation package for this company. Sometimes reputation plays a big
role to employees to stay long time in the company. Reputation of the
company also plays big role to maintain loyal customers.

Adaptation of new high tech technology can help Cadet

prolong to offer high class services to their customers
which is plays a big role to make them market leader

Today we are in modern era. To establish as a market leader company needs

to use high technology. Technology is the most important factor now a day for
the greater productivity and more output, which help every organization to
serve successfully with in the competitive market in international business.
Technology is involved in all organizational activities and the rapid rate of
technological change makes technological change a significant factor in
almost every organizational innovation. Technological change offers both an
opportunity and a threat. On the one hand, it helps create new product

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opportunities that manager and their
organization can exploit. The success of rapidly growing company is based on
the frequent change of the technology to make the operation effective. It is
always concerned about bringing in best technologies, which are needed to
produce the best quality products that the market demands. Without fast
change, the company would not be able to keep up with the ever-changing
environment in the long run.

At Cadet they are able to provide” unconditional service guarantee” because

of the technology that they use at cadet. This technological know how was a
patented right by cadet. They introduced bar code system with radio
microchips, by this the CSRs and the customers were both aware of the
uniforms progress through delivery, cleaning, repairing, replacement and
returning. Adaptation of such new technology completely automated the
cleaning process; so that reducing the time for delivering the uniforms.

Cadet exercise organized database managements

systems for the formation of brand trustworthiness

As building a customer relation is very imperative to any company, the cadets

always tried their best to build and develop a better customer relation.
Maintaining database is very important because this might improve the
particular situation. A proper database is very important cause by these
cadets can identify their valued customers and provide them with better
service. It’s a very important part of their business. So maintained the
database can also help to customize their service in accordance to the service
quality. In addition to the database for the customers they can also develop
one for their employees, where employee information would be saved and
updated. So that database management is really very important. By this it
would be easy to identify the best employee and assign them in creating
brand loyal.

Constant growth of the local and international market

would help Cadet Uniform Services to improve its
operation

When the market growth rate is contestant for a company in maturity period
they can easily run their business successfully. In a maturity period every
company try to reach to their targeted constant growth rate. Cadet was the
third largest uniform services company in Canada with annual revenue of
US$30 million and an average annual growth rate of 20% over the past

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decade. Cadet’s CSRs were earning a
$53,000 per year while other companies were paying their drivers $23,000 per
year. These CSRs with the corporate culture of quality, in their mind, worked
with their best effort to maximize the customer satisfaction level. Effort in turns
made very high sales revenue of US$17,000 per week. This was far more
above than the industry average of US$ 7000 to $8000 per month. They have
the constant growth rate in market so they can easily improve it’s operation
day by day with new facilities.

Competitive advantages of Cadet Uniform service

could help it to enjoy the opportunities in the industry
over many top competitors

The brand of Cadet’s corporate values was the Employee Entrepreneurship.

Cadet was implementing this critical process with their drivers also in a very
efficient way. While other companies were treating their drivers’ just as
traditional way of delivering and collecting the uniforms from different
locations, Cadet was empowering them with Employee Entrepreneurship.
That is why they do not just select the employees for their driving ability. They
tried to hire people with hardworking ability, creativity and friendly attitude
from morning to night, physical fitness etc. Without these abilities it was quit
impossible for serving as an employee Entrepreneur. In Cadet, the CSRs
were truly empowered to select the process of operation and decision-making.
All their effort is focused on customer satisfaction. They were directly facing
the customers while collecting and delivering the uniforms. So they had a
clear understanding about their customers. They were careful about the
individual need of their customers. As their pay was directly related with the
satisfaction level and customer retention rate they were bound to do so.

Market growth would help Cadet Uniform keep away

from reliance on to a particular market by which it can
create more proceeds and boost its consumers

Cadet’s Quality Awareness Board served an important purpose to spread

their quality maintaining culture among the new employees. As they think that
quality is the nucleus of their corporate culture. When the new employees
were aware of this culture it was easy for them to promote the employee
Entrepreneurship, which is the main key to their success. Vigorous and
exceptional ways Cadet uniform services has been maintaining quality,
service and customer satisfaction for a long period of time they have future
plan of expanding their business in North America.

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The expansion of their business to other
country would also raise their profit margin. In Canada they are making more
revenue from their targeted customers. If they will expand their business to
North America or other county they will easily earn more revenue and
increase their customer. From that they can be more popular in different
county if they can running their business successfully through out that
country. If they will increase their branch to other country they can easily
avoid the single market in worldwide. On the other hand if their business in
one country will face loss unfortunately but if they make in another country
huge profit at that situation they won’t be face any major problem for their loss
in one country.

Huge populations with low labor cost make their

business more profitable. Cadet can build use of
numerous chances in the business market. So it would
be a big business opportunity for them

Cadet can also expand its business in other areas overseas. Continents like
Asia where there is abundance of cheap labor. So they can earn a lot cause
for labor cost & most important thing is the population. Huge populations with
low labor cost make their business more profitable. Cadets would incur lower
cost of production and earn a significant amount of revenues compared to
what they are earning at present. So it would be a big business opportunity for
them.

Cadet has fulfilled the demand of Canada so that it has

considered to export their brand service to the
developed nations like United States

Cadet Uniform Services Ltd. was started in Toronto in 1974 by Quentin Wahl
as a spin- off of his father’s dry cleaning business. The company provided
multiple services to its customers; picking up, cleaning up, and delivering
customer uniforms as well as providing unique inventory control and
management services. The main task of the cadets is to do the job at the first
time and also every time.

There is a slogan, which makes the employees more productive and

determined to this job. These kinds of slogan make them efficient. Here
Service is the major thing and efficiency had resulted in lowering of the per
unit price. All such has lead to greater retention of customers. For this reason
cadets are successful and decide to export their special brands of service to
the developed nations like US.

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Threats
Familiarity and trustworthiness might be perceived as
low compared to competitors as it is in commission in a
different country

C
adet was crowned the third largest uniform service company in
Canada in the year 1995. With this reputation it must have been an
easy job for Cadet to generate more revenue. However this is not
always the case. Other giant firms in the industry, those standing in number
one and two positions also provide quite a large number of customers with a
much-improved service. So this develops a sense of competition among
Cadets employees. And they surely have to work hard to survive the intense
heat of pressure. They have prospect plan of expanding their business in
North America. When they will do that, they will face people of different culture
and values. Currently, Cadet has not been following the traditional
management system. They are giving more emphasis on the empowerments
of CSRs.

This might create some problem. Cadet has a diversified workforce. Although
many people think that problem might arise from this diversified work force,
when they will extend their business it will turn into an asset. Many companies
face some problems when they try to expand their business. Many of those
problems arise from the difference of culture. If the management of that
company does not understand the culture of that place, they might not be able
to satisfy and motivate the employees.

They can face problems in satisfying customers too. When they will start their
business in another company they will new at that culture and business
market. Because at the very beginning of their business in a new country 80%
customer will have no idea about this company. So they may face some
problem. Customer already knows about their well reputed company. Majority
customers have their own choice and they like to take service from that
particular company. So that company is already known to all customers and
they are more experience than a new company. So when cadet will operate
their business in a new country probably they will compare as low compared
competitors. Because, on that new market environment they are totally new.

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Cadet Uniform Services might face problems in

motivating its employees with the same set of rewards
in other competitive market

Now they are hiring and maintaining people in a different process. Whether
that is going to be effective in that region or not is a big question. Because of
different culture employees of that place might not be motivated like the
people of Toronto. Furthermore, if the previous employees cannot transfer
their culture to the newly recruited employees, the level of quality and services
can decline. By that time many other competitor firms could arise potentially.
So this could be a challenge for Cadet in near future to expand their business
and spread their corporate culture along with the dedication for hard work
among the new employees.

Rewarding System

The Cadets compensation is tied to the measures of the customer satisfaction

and if the customer moves away the employee’s salary also sinks. This
rewarding and set back system of Cadets might de motivates the employees’
form doing their day-to-day activities. The customers might even switch for
other reasons beside the one of the employee, so having such a system of
sinking salary always puts the employees in an indecisive position about their
performance. The implications of such a system might upset considerable
number of employees at some point in time and cause greater damage for the
Cadets. It’s really very important to satisfy the customers. Cause the
satisfaction level is different for individual customers. If customer was satisfied
then Cadets was rewarded with bonus and increased income else negative
consequences. This rewarding and set back system of Cadets might de
motivates the employees’ form doing their day-to-day activities. The
customers might even switch for other reasons beside the one of the
employee, so having such a system of sinking salary always puts the
employees in an indecisive position about their performance.

Unless Cadet can maintain their current growth rate,

the intense competition that they will face later on will
prove to be extremely risky for them

In any kind of business, pressure and competition is natural and employees

have to ready for accepting that kind of challenge & competition. As Cadet
was crowned the 3rd largest uniform service company in Canada in the year

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1995, it was tough to maintain this position
and reputation. It must have been an easy job for Cadet to generate more
revenue. There are other giant firms and those are standing in number one
and two positions also provide quite a large number of customers with much
improved service. Also other companies those are standing in number fourth
and fifth position. As all of them wanted to make large number of customers
and wants to make profit that develops a sense of competition among Cadets
employees. Cause they surely have to work hard to survive the intense heat
of pressure.

Cadet has to become skilled at adapting to foreign rules

and guidelines

The biggest challenge that lies ahead for Cadet is the fact that they want to
expand to new horizons, locations. These new locations include expanding
into areas such as the United States where rules and regulations are known
to be very strict in terms of maintenance. So, Cadet also has to think over this
issue with much emphasis on it. They might have to get various sorts of
permission from various ministries in the United States. This might lead to
more time being consumed.

As they’re looking to grab the market of other countries, the biggest challenge
that lies ahead for Cadet is the fact that they want to expand to new horizons,
locations. These new locations include expanding into areas such as the US
where rules and regulations are known to be very strict in terms of
maintenance. So it’s not so easy to maintain the business and make profit
there. So, Cadet also has to think over this issue with much emphasis on it.
They might have to get various sorts of permission from various ministries in
the United States. This might lead to more time being consumed.

If Cadet Hires the wrong people it can reflect

negatively in company’s successful operation

It’s not an easy job to hire the right person. The Cadets do not rely on the
traditional HR managers or line managers for the purpose of Hiring. They
rather rely on the team managers who are responsible for examining the
qualifications and quality of the potential employees. The work in cadets is
very sophisticated and requires better movement of body parts as the
uniforms are always on the rails and transported.

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The Team members do not take into account of the physical aspects of the
job and so might result in hiring the wrong individual for the specific position.
One to one communication is really very important, which is important for
customer satisfaction. At last proper HR professional can lead to hiring of
wrong people as many misleading factors can influence the team members to
hire. The Cadets do not rely on the Traditional Human resource managers or
line managers for the purpose of Hiring. They rather rely on the team
managers who are responsible for examining the qualifications and quality of
the potential employees.

The work in cadets is very sophisticated and requires better movement of

body parts as the uniforms are always on the rails and transported. The Team
members do not take into account of the physical aspects of the job and so
might result in hiring the wrong individual for the specific position. In addition
the team members are not concerned of one to one communication, which is
important for customer satisfaction. In conclusion, by not having proper HR
professional can lead to hiring of wrong people as many misleading factors
can influence the team members to hire.

Cadet might have trouble transferring their unique

corporate culture as they continue to expand

Now, the cadets are expanding to international arena and to transfer the
culture and adaptation of the focus on total quality service would be a greater
challenge for the cadets. The greater problem for them would be the transfer
of the Cadet Employee culture in a growing organization. Dedication towards
service has been the hallmark of the Cadets. They have had a good corporate
reputation and healthy employee culture while operating in the local country.
Now, the cadets are expanding to international arena and to transfer the
culture and adaptation of the focus on total quality service would be a greater
challenge for the cadets. The greater problem for them would be the transfer
of the Cadet Employee culture in a growing organization.

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Human Resource Issues

C
adet Uniform Service is one of the leading launderer business started
in Toronto in 1974 by Quentin Wahl as a spin of his father's dry
cleaning business. The company provided multiple services to its
customers like picking up, cleaning and delivering customer uniform as well
as providing unique inventory control and management service. The company
has diversified services to provide its customers world class cleaning facilities.
By balancing properly the needs and wants of their employees and
customers, the management creates exceptional experiences at their
extraordinary service-is the company’s main mission

After going through the case we have found that some information regarding
the employees is given like detail information about the training procedures,
reward system in both monetary and non monetary, motivational procedures
is given. Moreover, as the company is planning to transfer the employee
dedication to service to future employees in both managerial and non-
managerial level. The firm also determined a need for dramatic improvements
in employee productivity.

Human resource issues have always been very vital to organizations that
have been successfully able to maintain a good position in the market and
good reputation. HRM is the process of acquiring, training, appraising and
compensating employees. Human Resource Management helps build
competitive advantage by developing their human capital.

HR is also important for to maintain good quality for long period and it also
explain how a company can retain good employee by giving incentives,
bonuses, reward, and great compensation to sustain its quality service. This
can be better explained by the fact when, HR handles the execution of most
firms downsizing and restructuring strategies. HR manager can also help in
the formulating of strategy, which requires the identification of the strengths,
weaknesses, external opportunities and many more.

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Lack of sound Human Resource Department

Cadet Uniform Services ltd. has a Human Resource Department but the
activity of the human resource department is not dynamic very much. Human
resource department is responsible Human-Resource Management serves 5
key functions:
• Hiring

• Compensation

• Evaluation and Management (of Performance)

• Promotions

• Managing Relations.

It is the responsibility of human resource managers to conduct these activities

in an effective, legal, fair, and consistent manner. Human resource
management aims to improve the productive contribution of individuals while
simultaneously attempting to attain other societal and individual employee
objective In terms of recruitment and selection it is important to consider
carrying out a thorough job analysis to determine the level of skills/technical
abilities, competencies, flexibility of the employee required etc.

Cadet Uniform empowers their employee so that potential CSRs were

examined carefully by team members rather than relying solely on the
evaluation of a traditional human resource manager or a line manager. Team
members were responsible for examining the qualifications and inherent
commitment to service and quality of all potential employees. This method
was utilized because Cadet’s current CSRs understood more fully the level of
commitment necessary to maintain the company’s quality and service
standards than managers who were less directly connected to the process. In
addition, it reinforced the culture of employee entrepreneurship and
teamwork.

Empowering is good for nay company but it need to be in limit. Some power
should be in hand to top authority. Otherwise employees will feel that top
authority can not take decision so that they rely on them. They need to have a
sound, properly designed and well functioning Human Resource department
to recruit the right people for the right position, to make the employees work in
that way so that they can contribute in achieving the corporate strategy of the
company. Above all a proper HR department is needed to prepare a well-
designed Human Resource Planning for the company.

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In any organization Human Resource Planning can achieve the optimum use
of human resources and to achieve the correct number and types of
employees needed to meet organizational goals. Additionally, Human
Resource Planning provides the basis for establishing and maintaining
effective HR programs and for coordinating the various HRM functions. For
this reason, Cadet needs a thorough HRP to have the accurate number of
employees with proper skills in its different distribution and service centers all
over the world. In order to develop a well-structured HRP the company needs
a well functioning HR department in its head office. Moreover, Cadet needs to
have HR units in it's every branch. Without a proper HR department it is very
difficult to allocate skilled employees and manage them properly.

The Cadet Uniform has proper training and

development program for its employees

Training is all about teaching the organizational member how to perform

current jobs and helping them to acquire the knowledge and skills they need
to be effective performers. Development is building the knowledge and skills
of the organizational member to take on new duties and challenges.
Development programs are needed to make the managers expert in various
areas and by doing so design effective HR functions, which will allocate the
scarce resources in a way that maximizes their contribution to the
achievement of the organization’s business goals.

Training and developments programs are required to develop a skilled

workforce. In the case information regarding the training and development
programs is given. That is why we come up to this conclusion that Cadet has
many Training & Development program for its employees. They believe to
learn new skills that could significantly enhance their ability to serve their
customers. They also believe that an education center offered updated
materials on quality and service issues. The company actively encouraged
CSRs to seek outside education and reimbursed such educational pursuits.
The only stipulation to continuing education was that CSRs must share their
newly acquired knowledge with other employees through a summary of how
the experience could be beneficial to one’s work.

Additionally, employees had the choice of being trained in other areas of the
business, contingent upon being able to find someone willing to trade
positions. This provided employees greater job flexibility, variety, and personal
(as well as professional) growth opportunities. It also increased the general
understanding of the company and the requirements for success in this
industry.

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A Quality Awareness Board (comprised of employees from different parts of
the business, as well as customers) exercise on how to best increase the
effectiveness and efficiency of day-to-day operations. The focus on
understanding various levels of operational efficiency is illustrated through the
use of Error Cause Removal (ECR) forms. In addition, weekly figures on
sales, costs, and growth were posted on bulletin boards throughout the
business.

But to train an employee after selection and recruitment is expensive. When a

company trains a group of employee they have to arrange improved training
and development programs. After getting the training it is not obvious that the
employee will sustain with the company for a long time.

Cadet Uniform Services provides an impressive

compensation package consisting of both monetary
and non-monetary rewards

To evaluate the employees’ contribution Cadet Uniform Services provided

both monetary and non-monetary rewards. Their compensation package
served three purposes; attract potential job applicants, retain good employees
and motivate employees.

Monetary: In Cadet the Customer Service Representatives’ (CSR’s)

payment was completely attached with the degree of satisfaction of each
client. If a customer was satisfied with a CSR’s service or a customer was
retaining for a long time, then the CSR was valued through increment or
bonuses. The negative consequence might occur if the customer was
disappointed or departed the company. For all employees the direct
correlation between customer satisfaction and pay acted as a tremendous
motivational tool.

Non-monetary: Monetary rewards are not the only motivational means.

Motivation that results through non-monetary tools should not be
underestimated. Non-monetary rewards include variety of objects; such as
Quality Kids Day, Zero Defects Day, Display of quality awards received,
freedom of doing job from employees perspective etc.

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Quality Kids day means the employees have the opportunities to share the
quality concept with their children. Zero Defects day refers those days when
the company achieves its goals ahead of schedule, the plant close earlier for
a barbecue on that that day. These tools have immense influence on
motivation.

The display of the Quality awards that the company received from its
customers in the cafeteria appeared as an indication of pride for team
members. The key advantage of the gratitude was that these awards were an
honor to all team members of the organization and acted as tool for enhance
the company’s goals and culture. On the other hand in Cadet one can do
one’s job as one best sees fit. Employee can be highly motivated if he or she
has the control over working environment. Cadet delegated CSRs
tremendous autonomy on how best they can serve the customer.

Cadet ensured that the combination and interrelatedness of motivational tools

both the monetary and non-monetary tools that were mutually supportive
could proceed as a unison rather than conflict. Instead of this well designed
compensation package, some compensation objects are left out from the
packages those can act as a highly motivational tools; such as time away
from work, services and benefits, protection etc.

Cadet view their employee not only as employee but

also as a "customer service representative" creates a
great satisfaction for the employee

We know that any service-based company has to focus on their quality of

service heavily to sustain in a competitive market. And it is obvious that to
maintain the quality of service any company need to do some extra thing to its
employees to retain the good relationship with the customer. If any company
does not maintain good relationship with its employee or employee do not
have the satisfaction with the employer than it is impossible to make the
employee work well.

Cadet Uniform Service sees their employee not only as an employee like
other company does but also as "customer service representative", which is a
matter of extra status. This status makes the employee feel more proud, they
feel that they are not only the regular employees; they are some thing special
of the company. They are bound to feel that they are not only the employees

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of the organization; they are the part of the
organization. Without them the company is not complete.

They also can realize from their heart that they are putting their best and
adding value to the employee not only they done their job. So in Cadet when
they are served their employee as a "customer service representative" then
employees not only do their part of job but also extended work that they may
not be responsible for that. So to create the satisfaction of the employee or to
earn the best work it is essential to make the employee first proud be with the
company and make them feel like a part of the company not only employee.
Then the employees are bound to work as team member to complete the goal
of the company.

Cadet ties compensation almost entirely to measure

customer satisfaction

In every company there is compensation program for their employee. Different

company has different compensation plan their employee, which is according
to their company strategic plan, employee need and also to create employee
motivation activities. Generally the service-based companies are totally
focused on the quality of service, marinating good relationships with the
customer and doing the right job on the right place and in a proper way. So to
get the best job from the employee organizations have to plan a
compensation plan in such a way that meet both the organization's ability to
pay and any governing legal regulations. Cadet mostly emphasize on
customer satisfaction.

So, the CSRs payment was directly related with customer satisfaction.
Cadet’s focal point was how best they can serve the customer. Though Cadet
compensate their employee highly if they can satisfy their customers but this
may not act as strong motivational tools for some employees. Employees may
feel that the organization is only concerned about customers’ satisfaction
rather than employee satisfaction. Because when the employee fails to satisfy
their employee it directly affect their salary. Employee may discover their job
as a boring one because every day they had to the same job from morning to
noon and their duty is to satisfy the customers. The employee may not be
satisfied with the organizational hallmark of “customer satisfaction” and they
may feel that Cadet give less priority on employee satisfaction.

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Empowering the employees enhances the productivity

of Cadet Uniform

Empowering employees means putting employees in charge of what they do.

And in so doing managers have to learn how to give up controls and
employees have to learn how to take responsibility for their work and make
appropriate decision. By empowering employees can take decisions rapidly.
They do not need to wait for the higher authority approval. By this employee
will be more motivated they will like to do their task more efficiency. When
they will feel that higher authority rely on them they will feel more important
and that will make them more motivated towards their work.

As Cadet Uniform Service is a fat structured organization and the span of

control is huge in this company. The employees, even the middle managers of
Cadet do not have much decision-making authority. Rapid decision-making is
very vital, where quick response is required to satisfy the customers. Decision
making authority will make the employee more dedicated towards his/her
work and motivates to increase his/her productivity.

Cadet Uniform Service needs to give each individual the delegation of

authority to take necessary decisions about the daily functions of the Cadet.
Moreover, the top management of each individual needs to have the authority
of taking necessary actions independently to improve the overall condition of
the cleaning service. In addition to this, the management can give the lower
level employees, who directly deals with customers satisfaction by doing the
job, some limited authority to take decision. This limited authority will help the
employees solve any problem on the spot and increase customer satisfaction.
In a word, more decision-making authority enhances the overall performance
of the company.

Cadet gives its employees absolute authority to act as

individual entrepreneurs

Traditional managerial control of employee was absent from Cadet as control

was given to the employee on how best they can serve their customers.
Employee entrepreneurship was a hallmark of Cadet’s corporate philosophy.
The idea of employee entrepreneurship was a promise to the reallocation of
decision-making power rather than a hollow concept of employee
“empowerment”. Cadet’s focus on service to the customer reflected the

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entrepreneurial nature of the CSRs. Cadet’s
emphasized on employee entrepreneurship because they believed that
employee will feel motivated and will work hard if high level of authority is
delegated to them. A CSR’s success or failure was predicted on the complete
satisfaction of customers as well as the amount of income he generated on
his routes. If a CSR could satisfy his customers or could retain them for a long
time he will enjoy extra amount of income. Approximately 60% of a CSR’s pay
was based on customer retention levels and another 30% on ratings given by
customers. This dependence on customer feedback reflected how an
individual entrepreneur succeeds or fails.

This high level of delegation of authority may create some problem because
at some point they will lose control over the CSR. They will not be able to
monitor or to hold power over the CSR. Though their pay is tied with
employee satisfaction, they may engage with some unethical activities
besides serving the customers customers-which may effect company’s
reputation. On the other hand if an employee gets too much compensation
and also the power then it can be misused by the employee, which will
damage the company reputation.

Cadet has a view that their recruitment system should

involve CSRs so as to be more effective. However, this
may involve high costs and cause friction among
management and employees

The company Cadet Uniform Service is engaged in an ongoing talent search

for more and different professional expertise. To implement their new
business strategy of customer focused teamwork striving, to continuously
improve the process management skills through fact based decision making,
to enhance customer and shareholder value, the company need to recruit
more skilled, potential and energetic people. Though, the company does not
have any well-designed recruitment procedure to hit upon the right
candidates.

Effective recruitment procedure is important to identify or select the potential

candidate. Moreover, if there is a structured procedure to select candidates
then it also helps to retain that selected employee in future. Recruitment is the
process of attracting individuals on a timely basis, in sufficient numbers and
with appropriate qualifications and encouraging them to apply for jobs with an
organization. Applicants with qualifications most closely related to job
specifications may then be selected. Thus, effective recruitment procedure is

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needed to select the right pool of employees
to attain its new business strategy.

In Cadet during the hiring process human resource manager or line manger
were not the only people who were involved in recruiting process. For hiring
CSR, potential CSR candidates are carefully scrutinized by current CSR team
members rather than solely relying on the evaluation of a traditional human
resource manager or a line manager. The current CSRs team members were
responsible for the qualification and essential commitment to service and
quality of all potential employees. Cadet adopted this method because they
believed Cadet’s current CSRs understood more clearly the level of
dedication necessary to maintain the company’s quality and service standards
than managers who are less directly involved to the process.

This process may generate frustration between the human resource manager
and the line manager. They may feel that they are not getting proper attention
and importance in terms of recruiting process and they may feel that they are
being avoided. They can be de motivated, which can appear as a serious
problem in the organization. On the other hand, Cadet recruits very frequently
and provides training and development service to the new employees. This
frequent recruiting process may end up by hiring wrong people for a particular
job. Because of the frequent hiring process they also had to expend lot
money.

Cadet had a large diversified workforce

In Cadet’s workforce there were people from 46 different ethnic groups. Cadet
had a large diversified workforce. The values, norms and culture vary from
group to group. Each group has its own standards, morals and ethics.
Conflicts may arise while working with so many different types of people.
Cadet may face each people are from different background and they judge
everything from their principles severe difficulty in managing such a large
diversified workforce.

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Recommendation

T
he case introduces Quetin Wahl, the founder and President of Toronto-
based Cadet Uniform Services Ltd. Cadet was the third largest uniform
cleaning company in the world and occupied a 10% share of the $300
million uniform-cleaning business in Canada. In 1993 Cadet was among the
five companies awarded a Certificate of Merit under the federally-sponsored
Canadian Awards for Business Excellence. The case studies the basic
strengths of Cadet and what made the company one of the leading players in
their industry. Cadet is considered the launderer’s launderer. The business
was started in Toronto in 1974 by Quentin.

The company provided multiple services to its customers; picking up,

cleaning, and delivering customer uniforms as well as providing unique
inventory control and management services. These services were provided by
Customer Service Representatives (CSRs) who, while employees of the
company, were given absolute authority to act as individual entrepreneurs.

In the case of Cadet Information Services, we have seen that the company
doesn’t have any problem that can push them back. Is has reached its highest
pick and the goal has been achieved. The employee satisfaction is highest,
the customers are happy, the organization is earning a huge amount of
money and every thing is going fine with it. They want to grab their matured
stage and definitely will not want to go to a decline stage. Although it has
been seen that they don’t have any internal problem that can cause them
herm, they should now focus more on retaining the satisfied employees and
the contented customers. For that reason all the recommendation should be
based on it, which we have been mentioned below.

Over the period of time, the Cadet Information Services has done a
tremendous good job and they have managed to become the industry leader.
It happened just because it had a pool of dedicated and devoted CSR s
whose objective and aim was completely harmonized with the goal of Cadet
Uniform System. Now the organization has reached its goal and confirmed its
sustainability in the market. For that reason, it doesn’t need plan to grow
further; rather it does need plan to keep the growth consistent so that it
doesn’t fall. In order to do so, it has to maintain the harmonization of goal
between the organization and employees; otherwise it will fall from its great
position. This is why they could provide such good quality service to their
customers and why they had such soaring profits.

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1) Quality Control inspection performed by the HR

Manager themselves with a feedback loop to the
production line:

Total Quality Management (TQM) is a management strategy aimed at

embedding awareness of quality in all organizational processes. TQ is a
people focused management system that aims at continual increase in
customer satisfaction at continually lower real costs. TQM is a management
approach for an organization, centered on quality, based on the participation
of all its members and aiming at long-term success through customer
satisfaction, and benefits to all members of the organization and to society.
Inspection is a simple mean by which the items are sorted. Good items are
kept and bad ones are dropped. We can decide to check all the products
(total inspection). Using inspectors in can bring drawbacks:

Employees think inspectors are "the enemy"

Employees might feel that inspections do not add any value and they are held
accountable for good and bad results to which they contribute but do not
completely control. There are external factors that can affect the quality
standards. The inspectors might be biased or inspection gives people a
chance to cover up or fix mistakes. Therefore, gives inspectors a better
picture of the typical state of the inspected object. Total participation- If we
want the continuous improvement to take place, we should let the workers do
it.

Continuous improvement is a worker's task

The workers are usually more competent than the managers to improve the
system. To ensure that this happens it is necessary that goals are clear,
challenging and reachable A defined level of quality is needed: one, for other
measures and goals to generate an award or, two, for some part of an award
based on achievement of other goals to be made available to employees.
Quality serves as a "gate" that must be passed to make available part or all of
an award generated from other measures and goals.

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2) They should not have exaggerated expectations

regarding the potential benefits from a CSR initiative
and monitor the actions of CSR regularly

CSRs are people employed by companies to serve as a direct point of contact

for customers. In the 24/7 world today companies need to ensure their
customers receive an adequate level of service or help with their questions
and concerns. Such customers may be individual consumers or other
companies each with different needs. Many companies provide customer
service via the telephone through call centers. The CSRs interact with
customers to provide information in response to inquiries about products or
services. They also handle and resolve complaints and communicate with
customers through a variety of means.

A proper plan and plot progression is a must for Cadet Uniform services as
they want to retain their consistency in their growth. If they don’t have proper
progression plan in their mind then they will not be able to keep their constant
growth. There are some certain moves that have helped them to achieve their
goal and there is also some information that is needed to run the operation,
these things should be known to the CSR s in order to behave accordingly.
They have already defined their activities and moves that have made them
grow so big and successful, now all they have to do it to plan and plot the
progression and behave accordingly.

They have to let the employees know about all the information and activities
that are necessary for the company to retain their success. If the employees
can become able to know those, they will be able to perform accordingly and
thus the growth will be consistent. They also have top monitor the new CRS s
constantly in order to measure their performance and have to let the CSR s
know about the sales and other stuffs of the company. Tin the following way in
might go on:

Constant monitoring

As we have stated before, a constant monitoring is must for the retention of

the growth of the company. The newly employed CSR s will constantly be
monitored the activities, behavior and performance and if there is any lacking,
they will e informed and advised by the supervisor.

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Informing the employees and CSR s sales, cost and

growth

If the employees don’t know about the growth and the expenses of the
company, they will not be able to perform accordingly. In the case it has been
mentioned above that Cadet Uniform Services has a bunch of very dedicated
and loyal employees. So if the loyal employees don’t get chance to know
about the company data, they will not be able to perform accordingly.

FOCUS targeted move

Cadet Uniform service has to focus the targeted move. They have fix their
target hitting on which they can get the fastest and easiest success. So, they
have to focus on that targeted area and have to move according to that

3) Performance appraisal needs to be more effective as

employees must perceive that methods used to appraise
employee performance incentives are to be based on
performance

Performance assessment should be built in such way so that it can give both
the employees and the organization the highest benefit. If the performance
appraisal is neat and strong enough to motivate the employees, the
employees will have higher motivation to improve their skills and performance.
As a result the organization will be benefited as well. It is also important
because, measurement of their performance is quite a difficult task mainly due
to the natural characteristics of the jobs themselves and often because their
job is performed in front of the customers and there is no scope for doing any
mistake.

On the other hand, it is somewhat impossible to maintain fair equity between

contribution and remuneration if performance cannot be measured accurately.
Nonetheless, in some cases, it is often possible to identify the financial value
of specific tasks or jobs from the value of the sales made by a representative.
Still, it is essential that some form of well designed and well-organized
technique should be used to accurately measure job performance for such
employees.

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As the main focus of the newly developed compensation standards are on
performance, it is recommended that the performance indices should be tied
to customer account based contribution, teamwork capability and timely
achievement of given objectives, etc. However, the yardsticks should have
relevance and acceptability among the employees. They should also be
compatible with the particular job pattern of each of the employees. They also
have to be unqualified and identifiable. When the employees will not get a
proper performance appraisal, they will not be motivated to work for the
company and thus their performance will go further bellow.

So a proper performance assessment is needed to make them feel motivated,

the accuracy of the appraisal process regarding his/her performance is vital to
which his/her remuneration corresponds. Any unjust measurement of
performance or delayed remuneration may cause a CSR s loses his interest
in carrying out his job activities on time. So, it is necessary for the employee’s
performance appraisal.

4) Achieve and Sustain Internal and External Equity

in Compensation Practices because if there is any
inequity in the payment, it will cause severe de-
motivation to the employees

It is a major thing that each and every organization should understand in a

primary basis. Discrepancies existing in any of the sectors, doesn’t really
matter whether it is the external or internal discrepancy, it herms the
performance of the employees in a greatest way. Is the employee can get a
clue that they are not being paid properly or the market salary of his post is
more than what is it getting, or some other in the same post of the
organization is being paid more, it can cause him severe demotivation. People
want exact and fare compensation and if the company fail to provide them
with that, it is going to create a mess.

Discrepancy is of two types, external discrepancy and internal discrepancy. If

the employees is getting less than what the other competitors are paying
for the same job, then it is external discrepancy, mean while if the
employees getting less paid then any of the same position holder in the
same organization or if his/her subordinate is getting more payment then
that of him/her, it is called internal discrepancy, which exists inside the
company.

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Both of these discrepancies work too much
negatively and can ruin the motivation of the employees to give the company
their best of even to improve their skills and efficiencies. Employees feel de-
motivated and for that reason their efficiencies get lower. They can’t serve the
customers and the customers can get dissatisfied as well, which can affect
the profit margin of the company.

Unless exact balance can be reached, grievance among employees might

hamper the growth and performance of the company. Therefore, equity must
be ensured for how much an employee is being paid against how much s/he
is contributing and how much others in the same industry is getting paid for
apparently replicable jobs.

Such activities include benchmarking jobs performance, conducting regular

salary survey (to measure external equity), conducting timely job evaluation
and employee appraisal as well as getting constructive feedback from
employees (to measure the level of internal equity) are some of the important
activities that should be carried out with utmost care. Maintaining equity in
payment for contribution is vital for developing a strong sense of job
satisfaction among employees. In order to ensure that both internal and
external equities are maintained at the level desired both by the employers
and the sales people, sales based organizations should carry out several
activities on regular basis.

5) Employees need change, and expects more

attractive remuneration

Working under the same old compensation might make them bored some and
they might need a change. If they are looking for a change then it is a good
way to attract them with an alluring compensation. A bored employee can
never give a good service to the customers and thus can make more herm to
the company. So if they can manage to have a good compensation package,
then it will be lot easy for them to reduce the boredom and work with more
dedication and attraction then ever before.

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A singe mistake can make everything ruined
in the CSR s duty. As they are interacting directly with the customer, if the
customers get the clue that employees are not doing their work properly, they
are not going to take the service of Cadet Uniform Service any more. So a
single mistake can be disastrous. In order to avoid all this, employees should
be more cautious and it is the duty of the organization to make them happy
and calm so that they can perform their job well. And to give the opportunity, a
good compensation package is a must. If the organization can understand
what a good compensation can does to the employees, it can take necessary
steps that can help the employees get the proper step to enhance their skills
and efficiencies.

The role of compensation is to motivate employees to work up their level to

render customer satisfaction. At Cadet Uniform management should help
employees inform properly what they will receive in return of their contribution.
Because, until or unless the employees are aware of the returns they will
receive for their effort, they will not be motivated enough. Therefore it is
important to help them learn what the role of compensation is. A huge amount
of people is involved in the process of emphasizing in the role of
compensation.

There are the HR managers have to appraise employees, they have to

monitor and administer the actual tasks regarding compensation. Also, they
are responsible for communicating to employees what they will receive in
return. Compensation Experts and Consultants, who should be involved in
suggesting and aiding the designing the appropriate compensation mix, and
financial Analyst as well who have to work to assess the financial viability of
the compensation packages to be offered. Providing them with the proper and
enriched compensation is the primary tools to get the best out of them, for
which Cadet Information Service can give them an enriched and well-
developed compensation package, which will help the CSR s to give the
organization their best.

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6) Make sure performance based pay does not lead to

expectation that pay will continue to escalate

A job received fixed pay, with annual pay increases based on performance
and the expectation of lifetime employment. The problem with this system is
the expectation that pay will continue to escalate. Indeed, resentment
develops when compensation does not increase, at the very least to keep up
with the cost of living. So with time, some may be paid too highly when
compared to new hires. People who’ve had many years of service tend to get
comfortable and overpaid for what they’re doing. And when the company must
cut back, they’re the first to go. Serious dissatisfaction can result if the
expected bonus is not granted because of a decline in profits or any legitimate
reason.

There are two ways to motivate people—the carrot and the stick.
Competitions—prizes (carrots) for the winners—tend not to work because
only the top few who feel the awards are within reach tend to try harder. Most
of the others, recognizing that for them, winning is not possible, simply ignore
the competition and continue to plod.

The best form of compensation is performance-based, with measurable

objectives. It gives people immediate and meaningful feedback. The easiest
targets to quantify are those based on bookings, shipments and profit. But the
drawback of the human element, where direct supervisors (the people who do
the reviews) with a personal bias shortchange some good people and
advance others who may simply be currying favor, must be avoided. Serious
dissatisfaction can result if the expected bonus is not granted because of a
decline in profits or any legitimate reason.

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7) Accurate, scrupulous and careful market survey

should be done so that there can, that can assure cadet
uniform system a précised and accurate idea about the
U.S. market

As Cadet Uniform Services has done a very good job in their previous
operation, it is quite normal for them to have a stable footstep. So it is quite
normal for them to do a proper market research before entering in a big
market, and if the market is as big the U.S. then it is more preferable. So, it is
highly recommended that before entering in the US market, they should do an
exact and accurate market research, which will help them get the feedback
about their company in a new market.

The market survey will help them in mane regards. Firstly they will be able to
know about the behavior and activities of the US market, which is new and
unexplored for them. Secondly they will be able to know the want of the
customers. They will know what the customers want form them and they will
be able to perform according to that. Thirdly, they will be able to know the
possibility of their success in the US market. so, it is the best way to get to
know all the information and then plan to grab the US market.

US market is quite huge and there are many competitors. So, if they enter in
that market without proper and perfect information and planning, they will be
cleaned out from the market and will not be able to do a profitable business.
So if they enter in the market after doing a perfect and proper market
research, it will help them ion their future. It is a very risky move to expand
their business and exporting to United States. As the US market so huge and
there are many competitors, it will not be that easy for Cadet Uniform Services
to grab the market easily.

Additional, it will cost them a huge to expand their business in US. So, as it is
cost concern, Cadet Uniform Services should have a rigorous market survey
in order to get the information about the U.S. market and also the assume
their possibilities to be successful over there. For doing that, a proper market
survey is a must for them.

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8) There should be continuous improvement which

aims at the customer satisfaction, at the improvement
of everybody, improvement of the company’s personnel
and of the society

To improve a product/process is not obvious. A methodology is necessary.

Here is the one called the quality control step.

a) Select a theme

First, we should determine the problem on which we will concentrate.

Examples are: "Decrease the number of late deliveries"; "decrease the miss
-forecast"; "decrease orders lost”. Formulating the theme as a weakness
helps to state the theme as a problem not as solution.

b) Collect and analyze data

After the theme has been stated, one should not hurry for solutions. The first
thing to do is to consider the reality again by collecting data related to the
selected theme. Check sheets, histograms, Pareto diagrams and scatter
diagrams are all QC tools which help collecting and analyzing the data.

c) Analyze causes

The goal here is to go back to the root cause of the problem. A classical tool
for finding the root cause is the cause-and-effect diagram which addresses all
types of problem/error sources: man, process, material and environment.

E.g. An improper performance based system, inadequate compensation, CSR

not affective etc due to Whatever technique you used to determine the root
cause, the systematic nature of the technique is essential. After the theme
has been stated, one should not hurry for solutions. The first thing to do is to
consider the reality again by collecting data related to the selected theme.
Check sheets, histograms, Pareto diagrams and scatter diagrams are all QC
tools which help collecting and analyzing the data.

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d) Plan and implement solution

The next step is to find a remedy to the root cause. For our example, one
could imagine some training for the mathematics needed for the course.
This solution could be tested on a small sample. Other remedies could be
tried. The second thing to do is to consider the reality again by collecting data
related to the selected theme. Check sheets, histograms, Pareto diagrams.

e) Evaluate effects

Again, before implementing the solution on a large scale, one should check
the effect of this remedy in the real life. Only when it shows to be
effectiveness, it can be standardized. The first thing to do is to consider the
reality again by collecting data related to the selected theme. Check sheets,
histograms, Pareto diagrams and scatter diagrams are all Quality Control
tools which help collecting and analyzing the data.

f) Standardize the solution

At this point, the improvement is implemented on a regular basis. So, if they

enter in that solution without proper and perfect information and planning, they
will be cleaned out from the market and will not be able to do a profitable
business.

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Implementation

N
o recommendation is sufficient without implementation. A perfect
planning is never of any use if there is no execution. So, implementing
the parts that have been recommended is the vital most part of any
given situation. Without the in the implementation part, we can never achieve
our goals, so implementation in the important most part to proceed.

In this part of our paper, we would like to talk about the implementations that
should be done for the recommendation, in order to fulfill the main issue of the
case. Here is some of the proper planning that would help the organization to
achieve its goal. If the goal is not defined implementations

For any given organization, planning and processing according to the

planning is a vital thing to maintain. And planning can never be done if there is
no goal. Goal must be followed by perfectly; it will never be possible for the
organization to be successful by doing a planning and acting through it. To be
successful in the planning part the goal must be defined; otherwise it will
never be possible for any given organization to achieve its goal.

Over the period of time, the Cadet Information Services has done a
tremendous good job and they have managed to become the industry leader.
It happened just because it had a pool of dedicated and devoted CSR s
whose objective and aim was completely harmonized with the goal of Cadet
Uniform System. Now the organization has reached its goal and confirmed its
sustainability in the market. For that reason, it doesn’t need plan to grow
further; rather it does need plan to keep the growth consistent so that it
doesn’t fall. In order to do so, it has to maintain the harmonization of goal
between the organization and employees; otherwise it will fall from its great
position.

It is essential to align the compensation with individual goals and

organizational goals and values. Moreover Employees must be able to deal
with random and rapid technological changes as well as market risks; while at
the same, they must make sure that they are working in harmony with the
overall organizational strategies as well as with their own expectation out of
their jobs.

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EVERY STEP IN THE PICKUP , CLEANING, AND
DELIVERY PROCESS IS EXAMINED BY CSR’S

1) Quality Control inspection performed by the HR

Manager themselves with a feedback loop to the
production line

TQM is a management approach for an organization, centered on quality,

based on the participation of all its members and aiming at long-term success
through customer satisfaction, and benefits to all members of the organization
and to society. Inspection is a simple mean by which the items are sorted.
Inspection gives people a chance to cover up or fix mistakes. Therefore, gives
inspectors a better picture of the typical state of the inspected object.

Total participation- If we want the continuous improvement to take place, we

should let the workers do it. Total Quality Management centered on quality
and based on the participation of everybody which aims at the customer
satisfaction and at the improvement of the company's personnel, of the
company and of the society. A quality assurance plan is operational but the
management, the workers and the customers continuously interact to review /
improve this plan.

Concerned and connected people

• HR managers: they have to work on setting the performance goals

and benchmark standards. On the basis of such standards, they must
train the employees how to inspect the product in every stage and
make efficient use of it as now the employees will have direct
involvement with the product inspection the quality standard will raise
as a result.
Employees: they must perform their jobs on time so that their job
accomplishments are reflected by the earliest possible
appraisal session. They will be more motivated to do their work
more accurately by following the standard which will enable
them to understand the process better.

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Expected Results

Employees will be motivated to perform their jobs on time and will find
incentives for performance improvement. As everyone can refer to specific
Performance standard employees will be aware of their stand at particular
point of time.

THE COMPANY RELIED EXTENSIVELY ON THE CSR’S, THEY ARE THE PEOPLE ON WHOM THE
SUCCESS OR FAILURE OF THE COMPANY WAS DEPENDENT . CSR’S PAY WAS DIRECTLY TIED
TO THE SATISFACTION LEVEL OF INDIVIDUAL CUSTOMERS.

2) They should not have exaggerated expectations

regarding the potential benefits from a CSR initiative
and monitor the actions of CSR regularly

The CSRs interact with customers to provide information in response to

inquiries about products or services. They also handle and resolve complaints
and communicate with customers through a variety of means.
A proper plan and plot progression is a must for Cadet Uniform services as
they want to retain their consistency in their growth. If they don’t have proper
progression plan in their mind then they will not be able to keep their constant
growth. There are some certain moves that have helped them to achieve their
goal and there is also some information that is needed to run the operation,
these things should be known to the CSR s in order to behave accordingly.
They have already defined their activities and moves that have made them
grow so big and successful, now all they have to do it to plan and plot the
progression and behave accordingly. Because CSR’s is the people with whom
the customers have direct and face to face contacts. And if the CRS seeks for
assistance in front of the customers every time, the customer will loose faith
on the company.

The company relied extensively on the CSR’s, they are the people on whom
the success or failure of the company was dependent which could be a
problem in the future. Because CSR’s is the people with whom the customers
have direct and face to face contacts. And if the CRS seeks for assistance in
front of the customers every time, the customer will loose faith on the
company.

People with strong interpersonal skills

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• Top Management- Constant monitoring-As we have stated before, a
constant monitoring is must for the retainment of the growth of the company.
The newly employed CSR s will constantly be monitored the activities,
behavior and performance and if there is any lacking, they will be informed
and advised by the supervisor.

• HR Manager- CSR s will constantly be monitored the activities,

behavior and performance by the manager to ensure that they are not biased
or not creating conflict in the process.

They don’t have a proper performance appraisal system this would mean that
the employees will not feel that the performance based compensation is
reliable and they will not be motivated to perform well

3) Proper Performance appraisal needs to be more

effective as employees must perceive that methods used
to appraise employee performance incentives are to be
based on performance

It is important because, measurement of their performance is quite a difficult

task mainly due to the natural characteristics of the jobs themselves and often
because their job is performed in front of the customers and there is no scope
for doing any mistake. On the other hand, it is somewhat impossible to
maintain fair equity between contribution and remuneration if performance
cannot be measured accurately. Still, it is essential that some form of well
designed and well-organized technique should be used to accurately measure
job performance for such employees.

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Expected Results

When the employees will not get a proper performance appraisal, they will not
be motivated to work for the company and thus their performance will go
further bellow. So a proper performance assessment is needed to make them
feel motivated, the accuracy of the appraisal process regarding his/her
performance is vital to which his/her remuneration corresponds. Any unjust
measurement of performance or delayed remuneration may cause a CSR s
lose his interest in carrying out his job activities on time. So, it is necessary for
the employee’s performance appraisal.

ANY INTERNAL OR EXTERNAL DISCREPANCY OR INCONGRUITY IN THE COMPENSATION

PACKAGE IN THE COMPANY CAN MAKE THE EMPLOYEE LESS ENTHUSIASTIC TO GIVE THE
BEST TO THE COMPANY .

4) Achieve and Sustain Internal and External Equity

in Compensation Practices because if there is any
inequity in the payment, it will cause severe de-
motivation to the employees

Discrepancies existing in any of the sectors, doesn’t really matter whether it is

the external or internal discrepancy, it herms the performance of the
employees in a greatest way. Is the employee can get a clue that they are not
being paid properly or the market salary of his post is more than what is it
getting, or some other in the same post of the organization is being paid more,
it can cause him severe demotivation. People want exact and fare
compensation and if the company fail to provide them with that, it is going to
create a mess.

From the case we have come to know that the culture of the company Cadet
Uniform Service is very favorable and the employees are very loyal to the
business. The employees get the full empowerment form the supervisor and
they are allowed to take any kind of decision and as the employees are also
very loyal and dedicated towards the company, they never abuse their power
of empowerment in any occasion. That’s how the environment of Cadet
Uniform Service is very favorable and has a much enriched culture.

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Level of employees for motivation

• Top Management: they must make sure that the pay is fair and the
employees view it as fair and equitable.

• HR managers: they have to work on setting the performance goals

and benchmark standards. They must give feedback to top
management regarding the issue and monitor if employees are
satisfied with the pay or not.

Expected Results

Maintaining equity in payment for contribution is vital for developing a strong

sense of job satisfaction among employees. In order to ensure that both
internal and external equities are maintained at the level desired both by the
employers and the sales people, sales based organizations should carry out
several activities on regular basis.

WORKING IN THE SAME COMPENSATION FOR A LONG TIME CAN MAKE THE EMPLOYEES FEEL
DE - MOTIVATED AND MIGHT NOT INFLUENCE THE EMPLOYEE TO GIVE THEIR BEST TO THE
ORGANIZATION . THERE SHOULD BE SOME CHANGE IN THE MONETARY AND NON - MONETARY
AWARD .

5) Employees need change, and expect more attractive

remuneration, they should be given chance to
participate in designing the compensation package

Working under the same old compensation might make them bored some and
they might need a change. If they are looking for a change then it is a good
way to attract them with an alluring compensation. A bored employee can
never give a good service to the customers and thus can make more herm to
the company. So if they can manage to have a good compensation package,
then it will be lot easy for them to reduce the boredom and work with more
dedication and attraction then ever before.

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The role of compensation is to motivate
employees to work up their level to render customer satisfaction. At Cadet
Uniform management should help employees inform properly what they will
receive in return of their contribution. Because, until or unless the employees
are aware of the returns they will receive for their effort, they will not be
motivated enough. Therefore it is important to help them learn what the role of
compensation is. A huge amount of people is involved in the process of
emphasizing in the role of compensation.

Not only monetary payment but also employee benefit plans should be
provided for the employees. That will help motivate them for improving their
performances. A complete mix of both financial reward and benefit plan must
be offered to fulfill all aspects of employee satisfaction. New and improved
non monetary reward should be provided.

Who will implement

• HR Managers: They must come forward to design and implement a

better compensation package. The benefits provided should be
improved and new and better benefits required motivating employees.
They should evaluate jobs and find out the better compensation
package.

• Employees: They can provide information to HR mangers regarding

their wants and needs. They should also participate in designing a
compensation package.

Expected Results

Providing them with the proper and enriched compensation is the primary
tools to get the best out of them, for which Cadet Information Service can give
them an enriched and well-developed compensation package, which will help
the CSR s to give the organization their best. The employees will be more
satisfied as the compensation package is not altered according their own
preferences.

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INDEED, RESENTMENT DEVELOPS WHEN COMPENSATION DOES NOT INCREASE, AT THE VERY
LEAST TO KEEP UP WITH THE COST OF LIVING .

6) Make sure performance based pay does not lead to

expectation that pay will continue to escalate

People who’ve had many years of service tend to get comfortable and
overpaid for what they’re doing. And when the company must cut back,
they’re the first to go. Serious dissatisfaction can result if the expected bonus
is not granted because of a decline in profits or any legitimate reason. The
best form of compensation is performance-based, with measurable objectives.
It gives people immediate and meaningful feedback. There's the old cliché,
"I've paid my dues". Companies tend to drift along with an old culture, replete
with out-of-date processes not compatible with today’s reality. Serious
dissatisfaction can result if the expected bonus is not granted because of a
decline in profits or any legitimate reason.

Concerned and connected people

• Top Management: They will have to design the compensation in an

appropriate manner so that the employees understand that their
bonuses and other benefits will not be paid or paid less when company
is going through a crisis. They should prepare employees to face the
downturn when the company faces it.

• Employees: They will need to co-operate with the company and

understand that they belong to the company and as profits of the
company fluctuate so will their compensation.

Expected Results

Performance pay gives people immediate and meaningful feedback. But,

there’s always the human element. Direct supervisors (the people who do the
reviews) may have a personal bias which short-changes some good people
and advances others who may simply be currying favor. Thus preparing them
for uncertainties will be highly beneficial in the short and long term. Incentive
should include broader results to encourage everyone’s involvement in the
success of every part of the enterprise.

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WHILE ENTERING IN SUCH A HUGE MARKET LIKE
UNITED STATES OF AMERICA THEY NEED TO KEEP IN MIND THAT IT IS A VERY RISKY MOVE
TO EXPAND THEIR BUSINESS AND EXPORTING TO UNITED STATES . AS THE US MARKET IS SO
HUGE AND THERE ARE MANY COMPETITORS SO THEY NEED TO GO THROUGH RIGOROUS
MARKET SURVEY, OR ELSE THEY MIGHT NOT BECOME ABLE TO GRAB THE MARKET .

7) Accurate, scrupulous and careful market survey

should be done so that there can, that can assure cadet
uniform system a précised and accurate idea about the
U.S. market

The market survey will help them in mane regards. Firstly they will be able to
know about the behavior and activities of the US market, which is new and
unexplored for them. Secondly they will be able to know the want of the
customers. It is a very risky move to expand their business and exporting to
United States. As the US market so huge and there are many competitors, it
will not be that easy for Cadet Uniform Services to grab the market easily.
Additional, it will cost them a huge to expand their business in US. So, as it is
cost concern, Cadet Uniform Services should have a rigorous market survey
in order to get the information about the U.S. market and also the assume
their possibilities to be successful over there. For doing that, a proper market
survey is a must for them.

They will know what the customers want form them and they will be able to
perform according to that. Also they will be able to know the possibility of their
success in the US market. So, it is the best way to get to know all the
information and then plan to grab the US market.

Who will implement

• Top Management: In order to have a coherent approach to move into

a new and broad market, the initiative and the control should come
from the top management. It insures you will get the product the
marketing claims is selling. Practically, the management is required to
define a policy and objectives (i.e. a strategy in terms)

• Employees: The employees will be of more skill and as they will be

more efficient while doing their job and that’s how they will bring
business to the company.
“THE SERVICE QUALITY PROCESS IS THE SINGLE MOST CRITICAL COMPONENT FOR OUR
CONTINUOUS IMPROVEMENT .”

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8) There should be continuous Process improvement

which aims at the customer satisfaction, at the
improvement of everybody, improvement of the
company’s personnel and of the society

There is a growing interest in theory and in practice with regard to the

relationship between human resource management [HRM] and total quality
management [TQM] as well as the relationship between these two
perspectives and business performances. Empirical research suggests
significant effects of HRM/TQM on the performances of an organization It
integrates with the business plan of the organization and can positively
influence customer satisfaction and market share growth.

CPI means making things better. Its goal is NOT to blame people for
problems or failures...it is simply a way of looking at how we can do our work
better. When we take a problem solving approach, we often never get to the
root causes because our main goal is to put out the fire. But when we engage
in process improvement, we seek to learn what causes things to happen and
then use this knowledge.

People who’ve had many years of service tend to get comfortable and
overpaid for what they’re doing. And when the company must cut back,
they’re the first to go. Serious dissatisfaction can result if the expected bonus
is not granted because of a decline in profits or any legitimate reason. The
best form of compensation is performance-based, with measurable objectives.
It gives people immediate and meaningful feedback. There's the old cliché,
"I've paid my dues". New people tend to follow the "culture", and problems
arise when old cultures don’t adapt to new business environments.

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Expected Results

Quality is a never ending quest and Continuous Process Improvement (CPI)

is a never ending effort to discover and eliminate the main causes of
problems. It accomplishes this by using small-steps improvements, rather
than implementing one huge improvement. This will enable them to make
huge improvements.

Other benefits may also help Cadet Uniform to reach

its peak and to become the ‘launderers of launderer’

FLEXI TIME

Employees in such positions like the CSR s in Cadet Uniform Services can be
offered with flexi time benefits. However, they should be present in work for a
core time period on workdays. This will help employees to schedule their
interpersonal involvements during off times.

On the other hand, if more people are present in workplace at the same time,
more utilities and resource are used by idle employees, which may involve
huge utilities expense without bringing in any significant return. Therefore,
sorting their active times in more organized manner can help cut cost on such
expenses on the part of the employers.

COMPENSATORY TIME OFF AND BONUS LEAVES

Employees may be rewarded with compensatory time off and bonus leaves
while at a particular time when their job is not required by the firm. Thus,
compensatory time off, which should be non paid or nominally paid, will help
sales rep perceive that their employers hold a high level of empathy for them,
which, in turn, will motivate them to a great extent.

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DISTRIBUTION OF WORKLOAD THROUGH TASK SHARING

These can be another technique to accommodate employees with less

supporting resources and at a lower cost. These arrangements will mostly
work on the concept of part time job. Jobs having less interdependent nature
and not requiring unique personal or professional attention, some works can
be divided into smaller identical tasks and can be performed by different
persons. These provisions will even encourage some workers to work as part
time workers as support staff. This provision will attract competent employees
who prefer flexibility in job arrangement, who otherwise would not join full time
sales jobs.

EMPHASIZE ON COMMISSIONS AT PROGRESSIVE RATES

To compensate for reduction in basic salary and increment, and at the same
time, to encourage enhancement and timeliness of performance, such
payment provisions for payment should be introduced that will become due
upon achievement of assigned goals. However, it must be ensured that this
payment method is applied upon those who are given specific objectives to
attain or a sales account to acquire from time to time within short periods.
Again, the progressive rate will be effective in the sense that, for the
completion of first few sales the commission will be at one rate, and for a
number of next few sales, the commission rate can be made higher. This will
stimulate sales reps to achieve higher successful sales rate. However, such
‘success’ can be subject to customer satisfaction as well. The customer
satisfaction in some cases can be measured by repeat purchase of goods or
service made by same customer from the same sales rep. The progressive
rate, for some salable goods, can be applied on such repeat purchase within
reasonable time period.

Thus Cadet Uniform can achieve its goal if they implement the
recommendations properly and effectively.

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No Appendix Available

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