Analysis of Human Resource Issues - Coursework Example

Running Head: CASE STUDY ANALYSIS Case study analysis (Name) (Course) (University) Date of presentation: Lecturer: Case Study Analysis: Analysis of Human Resource Issues Abstract The following paper discusses human resources issues affecting the company in the case study. The main issues that have been discussed in the paper are: diversity management; organizational leadership; performance reviews; flexible work programs; succession planning and employee remuneration and benefits. The paper has also offered recommendations on how these issues can be dealt with. i. Diversity Management Lack of workforce diversity is a major human resource issues affecting the company. In the case, it has been pointed out that the company’s senior management is predominantly white, male and middle aged. This implies that most of the people (young and old, non-whites and females) cannot make important contributions to the company’s decisions. By definition, workplace diversity is a concept that refers to the appreciation, acceptance and respect for employees regardless of their backgrounds (Katharine, 2002). It entails understanding that each person in the workplace has a unique background and that individual differences should be respected. Organizations which have embraced diversity give equal chances and show respect to all employees regardless of their age, gender, race, religion or ethnic backgrounds. This consideration has not been taken into account in the management of the company under the case study. The company’s does not give women, non-whites or younger employees the necessary opportunities to participate in senior management positions. The company’s poor approach to diversity management is perhaps one of the factors responsible for the steady loss of talented employees. There are numerous benefits that the company can gain by embracing diversity in its workplace. According to Alfrieda (2001) diversity encourages companies to be moral and to value individuals when dealing with their customers. This way, cultural diversity increases effectiveness in the service delivery, enhances customer loyalty and helps reduce problems with workforce management. Considering the size and nature of the company in the case study, workplace diversity is fundamental in order for the company to function properly. The issue of diversity can be overcome by giving all employees equal opportunities to climb up the career ladder. It is imperative that the company institutes measures for employees to develop their talents and be promoted regardless of their age, race, religion or any other discriminatory variable (Katharine, 2002). Most importantly, it is crucial for the company to develop a diversity management approach in it recruitment strategies. This approach will enable the company to integrate the diverse backgrounds of its employees while offering the most exciting experience to its customers. ii. Leadership Issues Poor leadership is another major human resource issue evident in the case. The current leadership in the company has been described as bureaucratic and transactional. Both transactional and bureaucratic leadership styles are characterised by rigid structures as well as clearly set rules for operation (Berdahl & Anderson, 2005). Although these styles are crucial in situations which involve a lot of risks, they are highly ineffective in motivating employees. As can be deduced from the case study, the transactional form of leadership assumes a simplistic view of motivation, which fails to account for individual differences among employees. This is because it is based on the premise that employees can only perform either for simple rewards or to avoid punishment. For this reason, transactional and bureaucratic leaders do not typically recognize or praise employees for meeting desired expectations as can be shown in the case study. The current leadership in the company is too rigid and believes that the role of subordinates is only to do as they are instructed. The leaders use their formal authorities to instruct junior employees what they are required to do and are not willing to consider anything apart from the traditional organizational hierarchy. The company’s over-reliance on single leadership approach and the unwillingness of the current leadership to discuss or even consider the ideas of junior staff has greatly limited the company’s creativity and ability to adjust to changing circumstances. The leadership issues in the company can be circumvented by overhauling the current leadership form in favor of transformational leadership. According to Miner (2005), transformational leadership is typified by leaders who have the ability and determination to create a new vision for an organization’s future. Such a leadership inspires the workforce to take responsibilities with no regard for rewards or fear of reprehension. If implemented in the company, transformational leadership will create the necessary emotional appeal that relies on the shared vision for positive organizational outcomes. This leadership style will recognize junior employees as strategic partners in pursuing the organization’s day-to-day tasks. The task of changing the organization’s leadership can be achieved through seminars and workshops in which the current leaders will be informed about the benefits of changing to transformational leadership. Such an initiative will not only change the company’s leadership positively but will also bring immense benefits to the company’s human resources. iii. Performance Reviews Performance appraisal has not been made a priority issue in the company. As a result, it is not easy for the company’s management to monitor the performance progress of its employees. Essentially, performance appraisal is an opportunity for employees to be engaged in a dialogue with their employers about individual performance (Wilmore, 2006). Typically, performance reviews are aimed at past actions and hence provide opportunities to set targets for future performance. The company in the case study can use performance reviews as a basis for developing performance improvement plans and for reaching agreement about what employees ought to do in future. There are a number of important measures that the company’s leadership can take to make performance reviews a priority issue. The first measure is to ensure that everybody in the company gets to know the importance of the performance review process. It is important for junior employees to be informed why performance reviews are used to evaluate them. This way, junior employees can provide necessary feedback, clearly communicate expectations and open up dialogue with supervisors (Wilmore, 2006). Another important measure is to ensure that all employees are fully prepared for upcoming performance reviews. This can help them to list and document their achievements and any other issues that they may want to discuss during the reviews. iv. Workplace Flexibility Flexible work programs are arrangements in which employees are given substantial freedom to decide how to fulfill the obligations of their jobs. Because of competing personal and workplace commitments, it is crucial that employees are assigned flexible work schedules to meet these commitments (Stredwick & Ellis, 2005). In the company that has been considered in the case study, employees work under a tight schedule, are poorly paid and have little time for attending to personal issues. This is one of the reasons why the company’s fortunes are fast dwindling. Lack of flexibility in the workplace causes feelings of job dissatisfaction and erosion of motivation. It is therefore imperative that the company’s management institutes flexible work programs in recognition of the personal difficulties that employees may have. There are various programs that the company can take to institute a culture of flexible work programs. Some of these programs include flextime, compressed work week, job sharing, and expanded week among others. These options will give employees the opportunity to work with increased flexibility and minimal cases of job related stress. It is also beneficial that the company encourages employees to share responsibilities voluntarily. This can go along way in fostering positive interpersonal relationships and understanding in the workplace (Suff, 2007). v. Succession Planning Succession planning is a strategic and systematic approach for building a talent pool for ensuring leadership continuity. Through succession planning, organizations develop potential successors in a way that best fits their capabilities (Nemethy, 2011). In the case study, the apparent lack of succession planning is responsible for poor leadership styles in the company. In the case, it has been highlighted that some employees joined the management team with little or no experience on management issues. A well implemented culture of succession planning recognizes that certain jobs are too sensitive to the long term survival of a company and hence cannot be left vacant or be filled by unqualified persons. Implemented well, succession planning can help the company in the case study to achieve kits mission objectives by creating an effective process of developing, recognizing and retaining top talents. The issue of lack of succession planning can be overcome through adequate training and development of employees. This will make them ready for assuming senior leadership positions once the current leadership retires. It is therefore necessary for the company to identify the core competencies that are currently of strategic importance and which will be required in the future. The company can then determine its current supply of talents as well as potential future changes in talent requirement. The company should then develop appropriate recruitment, training and development strategies to ensure that the right employees are well informed about the company’s mission objectives. vi. Remuneration and Benefits Employees in the company are poorly remunerated because salaries are not based on performance. The company’s remuneration strategies are vey rigid and do not take into consideration special challenges that employees face in their day to day duties. It is for this reason that a substantial number of employees have left the company and others have threatened to leave. According to Pritchard and Ashwood (2008), good remuneration acts as an attraction and incentive to employees to perform their duties effectively and efficiently. Because salaries constitute an important source of income for many employees, good remuneration motivates employees, which in turn boosts productivity and work performance. Therefore, the amount and method of remuneration are important for the company in the case study ad its employees. There are two main methods that the company can choose to ensure that it gives the best remuneration for its employees: time rate method and piece rate method. Under the time rate method, remuneration is linked directly with the amount of time an employee devotes to a job. In this strategy, employees are paid a pre-determined amount daily, weekly or monthly regardless of their output. If implemented, this method can lead to minimal wastage of resources and quality output. In addition, the method can encourage employee unity because employees from a particular cadre or group are paid equal salaries (Fisher, Marshall and Nanayakkara, 2009). On the other hand, the piece rate compensation is based on the units or pieces produced by the employee. The system empathizes more on quantity output and hence salaries differ between employees depending on individual levels of output. This method, however, leads to deterioration in work quality and hence it is imperative for the company to implement the time rate method. References Alfrieda, D., (2001). Workplace diversity: issues and perspectives, New York: NASW Press. Berdahl, J. L., and Anderson, C. (2005). Men, women, and leadership centralization in groups over time. Group Dynamics: Theory, Research, and Practice, 9, 45-57. Fisher, K., Marshall, M. and Nanayakkara, A., (2009). Motivational orientation, error monitoring, and academic performance in middle childhood: A behavioral and electrophysiological investigation. Mind, Brain, and Education, 3, 56-63.  Katharine, C. (2002). Workplace diversity, Boston: Adams Media Miner, J. B. (2005). Organizational Behavior: Behavior 1: Essential Theories of Motivation and Leadership. Armonk: M.E. Sharpe. Nemethy, L. (2011). Business Exit Planning: Options, Value Enhancement, and Transaction Management for Business Owners. USA: John Wiley & Sons. pp. 178. Pritchard, R. and Ashwood, E. (2008). Managing Motivation. New York: Taylor & Francis Group. Stredwick, J. and Ellis, S. (2005). Flexible Working. London: Chartered Institute of Personnel and Development. Suff, R. (2007). For work, there’s no place like home. Equal Opportunities Review, October 2007 pp. 12-19. Wilmore, L. (2006). Performance Review", The Office Season Two. Los Angeles, CA: Universal. Read More