Sample HR Management Essay on Australian Cladding Company

Australian Cladding Company

Introduction

Australian cladding company is facing a number of human resource problem that need to be addressed for the sake of current and future welfare of the company. The cause of all these problems is the lack of a strategic plan in recruitment of staff. As a result, a number of problems have emerged that have affected the efficiency and productivity levels in the company. The first problem that the management needs to address is that of the ballooning wage bill at a time when the economy is failing. A number of huge contracts have been canceled as contractors struggle with reduced amount of work due to declining capital among the populace. Reducing the workforce will be a delicate issue that will elicit mixed reactions, but it is inevitable because the company cannot manage to hold on to workers who are not needed right now. This exercise will prove to be one of the toughest human resource activities that have faced the company. Therefore, a strategy must be put in place to ensure that the management does not attract the wrath of workers, which might result to costly cases and also is left with the best employees.

Problems and underlying issues

The company has experienced a tremendous growth, which has resulted in an increase in the number of employees serving the company. However, the company was not prepared for that and has not employed a strategic plan to integrate new employees smoothly. As a result, the company has employed many people in a manner that seems to have created a number of problems. The first and pressing problem is the increasing number of female employees, which has not been accepted wholeheartedly by the male employee who have dominated this workplace for a number of years. It has been noted that there has been instances, which are likely to lead to cases of sexual abuse due to conduct by some male employees towards their female counterparts. This is a situation that must be addressed immediately to avert looming disaster and the possibility that this might escalate to the point where the two genders can no longer coexist. This will affect the productivity of the company and cause irreparable damage in the public, which will adversely affect the income flow of the company (Rynes, Colbert & Brown, 2002).

This gender problem also needs to be addressed further because it is not clear the criterion that has been used to hire more women. It would be wrong to employ more women in a manner that will create the impression that they are being favored due to their gender. The human resource manager is a woman, which might be sending the wrong impression. In addition, the company has at times found that it has more workers than needed while at other instances there has been a shortage, which has led to overworking of the current work force. This implies that the company needs to identify a mechanism of balancing its workforce to ensure that there are no shortages or unnecessary excesses (Tsui & Wu, 2005). Shortages affect the productivity leading to deficits, which affects the rate at which the company supplies its buyers with products. Excess staff inflates wages without increasing the productivity, which affects the profits of the company. This is a tricky situation because a balance must be struck that will ensure that the company has adequate workers at any time.

The other problem that must be addressed is that of losing experienced and highly skilled members of staff. There must be some issues that the management has overlooked that cause staff members to leave the company for others. The management must address its employee retention strategy because it is usually hard to get replacement for such employees. Employees who have been with the company for a long time serve as educators of new ones and pass over the history and culture of the company ensuring there is perpetuity of the traditions of the organization (Tsui & Wu, 2005). This makes it possible for new workers to integrate and work towards the same objective with their older colleagues. Companies that are able to retain their employees have a higher success rate than those who lose employees now and then. It also saves the company induction and training time and money. Finally, most employees are demoralized by the current management structure, which makes it hard for them to rise in the workplace. This is caused by the fact that the management team that was assembled when the company started is still intact. This clearly shows it is improbable that an employee will be promoted. As a result, most employees seek other ventures where they know their experience, skills and work ethic will guarantee them a promotion, which has a number of benefits (Turnley & Feldman, 1998). This situation must be addressed if the company is to move forward and continue with its growth trajectory once the economy recovers from its current state.

Activities and approached to address the problems

These problems must be addressed by employing human resource management strategies that will address them. The first and urgent problem that must be addressed is that of scaling down the workforce to deal with the reduced workload. This will help address the skewed state where workforce exceeds available labor. This is an urgent issue because failure to deal with it will imply that the wage bill will remain large even though the income is decreasing which will lead to losses. Employees will be laid off based on the number of years they have worked here and their productivity/ in addition, the management will communicate the decision to do this and allow those who would wish to leave to communicate with the management (Price, 2011). This will allow the management to eliminate employees that were not contributing to the cause of the company and were deemed surplus to requirement. The employee reduction should ensure that those who are left are the best of the current staff. In addition to that, the company should improve its remuneration package to ensure the few left are motivated to work (Lawler, 2005). Well paid workers are more productive than those who are paid relatively lower. This will ensure that experienced workers do not leave the company and also ensure that production does not drop drastically as a result of downsizing.

Gender issues will also have to be addressed urgently before the problem blows out of proportion. This will offer a solution to the current problem and avert future problems likely to arise as the company grows in size. This will require the management to come up with a strategy that will ensure that men and women work together and respect each other. This should be done by summoning men who have been reported to have issues with women working there. They should then be educated and encouraged to work with their colleagues of the opposite gender. On top of that, the company should develop regulations that govern the relationship between genders and prohibit the use of derogatory terms (Huselid, 1995). This will help solve this problem in the short and long term. This will also avoid sexual harassment cases that face companies where women are sexually abused. This affects the public image on top of its finances due to the costs incurred during the case and compensation paid to victims (Rynes, Colbert & Brown, 2002).

Loss of experienced and highly skilled employees is another problem that requires a short solution. This situation may aggravate especially after workers are laid off due to reduced work load. The company will be left with only the best employees who it cannot afford to lose due to the effect that will have on the efficiency of the company. This will be addressed by improving the pay package given to employees. This should be followed by creating a structure that will ensure the most productive employees are rewarded through bonuses, pay increase and other benefits that will tie them to the company (Delaney & Huselid, 1996). In addition, it will ensure that they are motivated to integrate new members and motivate them towards working hard towards the growth of the company. Furthermore, the management should reduce the existing gap between them and the subordinate staff. This should be done by engaging workers regularly when making important decisions and implementing their opinions. Employees have been found to be more productive when they feel they are part of the company. This will appeal more to older employees who feel they have a lot to contribute because they have been part of the institution and know better than anybody what should be improved. On top of that, it will make it easier for the management to develop a comprehensive employee welfare package that will ensure all are provided with an ideal working environment (Wayne, et al., 2005).

Finally, the management should alter its management structure to create allowances for the promotion of workers who have been here for long. This will solve one of the problems that have affected the morale of workers who feel no matter how hard they work they will never be promoted. This can be solved by creating new positions, which appear long overdue because the company has expanded in size over the past few years. These new positions will allow smooth running of the company, bring management closer to the people and reward experienced workers who are an asset to the company (Boxall & Purcell, 2003). The company owner has not addressed the change in size of the workforce and increasing workload. As a result, he has maintained the same management team, which must be overwhelmed by the current workload and has been drifting further away from the subordinates affecting their ability to deal with problems affecting them. This calls for a restructuring of the administration and introducing new positions that will increase efficiency. In addition to that, the management should share with its workforce information such as profits, income generated, and expenses among others, to ensure that they are aware of what is happening. This will create a team spirit and will encourage their colleagues to devote their time and energy to the company because they will be rewarded through a promotion (Becker & Gerhart, 1996).

Conclusion

The company has neglected human resource management and must deal with emerging problems immediately. A well developed strategic plan is lacking and must be developed to solve prevailing problems and deal with emerging changes systematically. This is what has been lacking in the company and has resulted in a poorly managed workforce whose problems have been increasing over time.

References

Becker, B., & Gerhart, B. (1996). The impact of human resource management on organizational performance: Progress and prospects. Academy of management journal39(4), 779-801.

Boxall, P., & Purcell, J. (2003). Strategy and human resource management. Industrial & Labor Relations Review57(1), 84.

Delaney, J. T., & Huselid, M. A. (1996). The impact of human resource management practices on perceptions of organizational performance. Academy of Management journal39(4), 949-969.

Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of management journal38(3), 635-672.

Lawler, E. E. (2005). From human resource management to organizational effectiveness. Human resource management44(2), 165-169.

Price, A. (2011). Human resource management. Cengage Learning.

Rynes, S. L., Colbert, A. E., & Brown, K. G. (2002). HR professionals’ beliefs about effective human resource practices: Correspondence between research and practice. Human Resource Management41(2), 149-174.

Tsui, A. S., & Wu, J. B. (2005). The new employment relationship versus the mutual investment approach: Implications for human resource management. Human Resource Management44(2), 115-121.

Turnley, W. H., & Feldman, D. C. (1998). Psychological contract violations during corporate restructuring. Human resource management37(1), 71-83.

Wayne F. Cascio, & Aguinis, H. (2005). Applied psychology in human resource management. Pearson/Prentice Hall.