The paper "Raleigh & Rosse Strategic Human Resource Management" is an outstanding example of a management case study. Raleigh & Rosse has been experiencing a gradual drop in its sales and revenues since 2009. In order to prevent the continued drop in its revenues, a quick decision needs to be made. This report explains the process of providing the best alternative to prevent this drop. The process includes the following steps: problem/ issue statement, data analysis, suggested alternatives, Key Decision Criteria, Alternatives analysis, Recommendations, Action and Implementation, and Ethical Issues. 2.0 Problem/ issue statement The company wants the managers to own their business and the sales associates to own their relationships in order to maintain and improve customer satisfaction.
The problem is a flawed performance management system. This problem has led to a decline in sales in the company and unhappy employees who have taken court action to resolve their issues. If not addressed, the problem will lead to loss of morale of the employees, lack of customer satisfaction that will result in loss of revenue, and damage to the reputation. This will cut the link between the activities of human resource (planning manpower, performance appraisal, employee benefits and compensation) and the strategic objective of the business (Chang & Huang, 2005). 3.0 Data analysis The problem arose due to the introduction of a performance measurement system known as Sales- Per- Hour (SPH).
The issue was created by a distinction between ‘ selling’ and ‘ non-selling’ hours where non-selling hours led to a decrease in SPH. Non-selling hours are essential for customer satisfaction but they negatively affect the SPH. The manipulation of the system led to unethical issues. A 2004 court case that an employee was compensated due to wrongful termination based on SPH system is an indication of loss of morale for employees.
On January 2010, the lawsuit filed by all sales associates on violation of the federal wage and hours laws based on the same SPH system is an indication of a flawed performance management system. Such cases led to a lack of customer satisfaction, more decline in sales, and damage of R& R reputation reflected by a reduction in its profitability and its market position.
Caldwell et al (2011) identify a lack of awareness of ethical duties as a barrier to the establishment of work environments that satisfy the employees. Based on the 5-year statistical summary, the results in 2009 net sales ($400,432) and net earnings were least while the number of stores owned by the company had increased (38). Instead of dropping, sales and net earnings figures were supposed to be rising. These are the impacts of the SPH system. These issues mostly affect the employees given that they are forced to lose a lot of ‘ off the clock’ hours working for the company in order to achieve the SPH target.
The decision made will affect the company as it will lose its reputation, customers, and resources in addressing these issues as well as revenues. From the calculations using the SPH system, the employees benefit more if they achieve the SPH target. That is, if an associate underreports his or her hours, it means SPH will be improved and there will be more rewards. But if an associate reports more hours (above 40 per week), the SPH will be reduced below the target.
Fewer hours means less time for customer satisfaction hence, the system advocates for fewer hours in order to improve SPH. This is an indication of loss of customer satisfaction as well as reduced revenues.
Becker, BE, Huselid, MA, & Ulrich, D 2001, The HR Scorecard: linking people, strategy, and performance. Boston, MA: Harvard business school press.
Caldwell, C, Truong, DX, Linh, PT, & Tuan, A 2011, ‘Strategic Human resource management as ethical stewardship’, Journal of Business Ethics, vol. 98, no. 1, pp. 171-182
Carson, T 2001, ‘Deception and withholding information in sales’, Business Ethics Quarterly, vol. 11, no. 2, pp. 275-306.
Chang, WJ & Huang, TC 2005, ‘Relationship between strategic human resource management and firm performance’, International Journal of Manpower, vol. 26, no. 5, pp. 434-449.
Ellinger, AD & Bostrom, R 1999, ‘Management Coaching Behaviours in Learning Organisations’, Journal of Management Development, vol. 18, no. 9, pp. 752-764.
Ellinger, AD, Hamlin, R, & Beattie, R 2008, ‘Behavioural indicators of ineffective managerial coaching: A cross-national study’, Journal of Industrial Training, vol. 32, no. 4, pp. 240-257.
Florida Department of Health 2010, Step 4 - Create and Implement Plan of Action, accessed on 25 August 2012, http://www.doh.state.fl.us/hpi/Step4.html
Huselid, M. Jackson, S. & Schuler, R 1997 ‘Technical and strategic human resource management effectiveness as determinants of firm performance’, Academy of Management Journal, 40, p. 171-188
Payne, SL & Wayland, RF 1999, ‘Ethical obligation and diverse value assumption in HRM’, International Journal of Manpower, vol. 20, pp. 297-308
Way, SA & Thacker, JW 2001, ‘The Successful Implementation of Strategic Human Resource Management Practices: A Canadian Survey’, International Journal of Management, Vol. 18, pp 25- 32