Crisis Control and Other Functions of the Human Resource Department in the Company's Development - Essay Example

Case Study: Crisis Control Introduction Human Resource is a critical department, very necessary in any given organization. It is for sure that Human Resource is the department in an organization with many responsibilities that help in operations of the organization. This department is, therefore, responsible for the Human capital generation within the organization, retention as well as monitoring. In any case, it is usually the department on the spotlight when it comes to matters relating to Human Capital. This paper discusses the Role that HR functions in the development of strategies either medium or long-term to achieve the conflicting goals that involve the reduction of costs but on the same hand maintain the desirable human capital in an organization. It is also in support of the concept that if GMN was to practice redundancies and layoffs, as the method of reducing costs, it has to have followed legal procedures and handle legal issues pertinent to the same. The paper’s main argument is that Stacey’s argument of using redundancies and layoffs, in an effort to cut down the costs of GMS, whether legal or not, is incorrect. Organizations in the modern world have thought that human capital within the organization; though very critical to its operations, it increases the costs be it annual or monthly of a given organization (Chan & Ann 2001, P. 484-521). This fact is not deniable because for sure, the human capital relies on the company for payment, incentives and many other pertinent that add up to the costs of that given organization. From this argument, it has been the case that many organizations result to employing redundancies and layoffs thinking and prospecting that it is the amicable solution that would help in cutting down the costs of the organization instantaneously. However, this has not been the case for many companies because it has come forth with many negatives for the company (David 1995, p.63). Redundancies, and layoffs bring about diverse effects for the organization and they are another negative consequence to the organization (Galarneau 2001, p.19-29). Conversely, when it comes to layoffs, an organization has to look in-depth on key concerns. This is what the HR department should do. In fact, layoffs and redundancies should be the last option after trying out all the available options for reducing the costs (Galarneau 2001, p.19-29). The fact is, layoffs may be legal and companies use it to reduce costs, but in essence, it is also costly (Chan & Ann 2001, P. 484-521). The reason for this is that it leaves an organization with less ability to deal with its operations, when the organization picks up. Layoffs can also be extremely expensive especially because there are some packages of severance that come up when laying down employees in the right procedure. On the other hand, in the reduction of costs, the company should not focus on layoffs and redundancies, it is better they find other strategies, which are better and successful. For one, the HR department should use everything at its disposal to ensure that this happens, and no layoffs or redundancies are inflicted on the employees (Chan & Ann 2001, P. 484-521). The department manages people practicing the employer-employee relationship. Therefore, it is qualified to know how to handle this people without sending some away. The department involves using people productively in achieving the organization’s business objectives and the individual employee satisfaction and achievement of their needs meaning that using layoffs is hazardous to the future of the company in terms of labor force (David 1995, p.63). HRM seeks to integrate the interests of employees and an organization strategically of which layoffs cannot be practical at such a case. The purpose of HRM in any given organization is improving the productive contribution of employees; therefore, it is related intimately to all the management aspects of a given organization (Chan & Ann 2001, P. 484-521). The degrees to which the department activities divide between line/operating and the manager varies in the type of organization. The role of the manager in this department is being a strategic partner which requires the manager to facilitate business acumen, awareness and a customer orientation. The manager also plays the role as an Administrative expert requiring the HR manager to re-engineer the department activities in all processes of the organization (Schmidt 1999, p. 127-141). The HR also plays a significant role as an employee champion meaning that, in cases where layoffs are involved, he should ensure that the employee’s voice is heard. In this case, the HR manager should have the ability to relate to and ensure that the needs of employees are met, which is being the employee’s ‘voice’ in decisions’ management and being be fair and principled, assuring employees of the working out of their concerns (Hanaoka 1997, p. 226–56). The HR role is also as a change agent. This means that the manager should have knowledge of managing change, leading change in the HR function through the development of problem-solving communication, and skills, and value knowledge creation, dissemination and sharing (David 1995, p.63). Among the leading roles are job analysis, employment planning, Human resource planning, Employee recruitment, Performance appraisal, Employee selection, Training and development. With proper applications of these roles for the HR, he has the skill of strategizing on cutting down costs without depending on layoffs (Galarneau 2001, p.19-29). Instead of relying on layoffs to solve the situation, GMS board of governance should concentrate on the available employees and foremost in handling their demands and needs. Concentrating on layoffs risks employees loosing motivation as well as turnover in fear of job insecurity, and this is disastrous to the future of the organization (Schmidt 1999, p. 127-141). Instead, issues to do with Career development, programs in Health and safety, Compensation, Benefits, Employee motivation, Industrial relations, and Management of diversity. The HR needs to focus on such an approach and avoid recruiting more people (David & O’Shaughnessy 2001, p. 156-167). The main reason why the company board members say that there are still many tasks not completed is not because there is not enough labor force, it is because the available are not motivated, trained to do so, therefore, lag behind in completing tasks (Hanaoka 1997, p. 226–56). On the same note, there are legal issues coming with layoffs and redundancy within an organization. Protecting corporate reputation is one of the legal issues for the corporate HR. this may involve moving particularly beyond the respective legal requirements. It requires operating using a framework of acceptable corporate citizenship, social responsibility, and values and this is what the HR should purpose to do (David 1995, p.63). HR managers need awareness of legal issues governing the employee/employer relationship in practicing layoffs and redundancies. Labor law that incorporates law of employment (the contract that individual employees have with the respective employer) is one of the key legal elements to handle (David & O’Shaughnessy 2001, p. 156-167). Industrial law that involves regulating the manner in which the staff relates with their respective employer is another law in consideration to legal issues relating to layoffs. Among the other significant legal concept is the employment contract (Gibbons & Lawrence 1991, p. 351-380). This is a document written and signed by both parties. It is partly or wholly oral in agreement. It is, therefore, mandatory that the HR managers ensure that all the terminologies included in the contacts are clear before the signing, and this is what would be of help when it comes to layoffs and redundancies (David 1995, p.63). Another clear legal issue is avoidance of discrimination in the layoffs and redundancies. The company cannot decide on whom to layoff just by facial appearances, sex, family ties, corruption or any other form of discrimination, there is a procedure that the HR should follow if at all layoffs are the definite solution after much considerations of the other options (Christopher 1991, p. 319-23). Any practice making distinctions among different groups based on individual characteristics for instance sex, religion, race, and age, and so on, resulting in particular groups or an individual being advantaged while others are disadvantaged is unjust and condoned. A possible type of layoffs that a HR upholds to includes summary dismissal, which is dismissal without notice. This is, however, unlawful because it is not as per the contract of the employee (Gibbons & Lawrence 1991, p. 351-380). Another type is redundancy based on economic or commercial decisions, and this is the case with GMS. However, it is not appropriate because it discriminates against the rights of employees. Constructive dismissal falls in appropriate and right in the case of layoffs (David 1995, p.63). This is when an employer acts totally in contrast to the conditions and terms of employment. On these legal issues, it is mandatory that the reason for layoffs should not relate to economic reasons. Instead, some of the justifiable reasons include serious misconduct, disobedience of an employer’s, drunkenness at work, physical/verbal abuse, incompetence, dishonesty / bribery, Neglect of duties, criminal behavior and Absenteeism (Christopher 1991, p. 319-23). On the same note, the legal issue pertains to procedures for dismissal, which should follow the fair work act of dismissal and its requirement. This includes the valid reason for layoff and demonstrating substantive fairness. On the same note, the employee has some rights where he can legally challenge their layoff in an industrial tribunal or seek redress from other law institutions of labor (David 1995, p.63). References Chan, S. & Ann, H 2001, Job Loss and Employment Patterns of Older Workers, Journal of Labor Economics 19, 484-521. Christopher, R 1991, Are Workers Permanently Scarred by Job Displacements, American Economic Review 81: 319-23. David, J 1995, The Management of Human Resources, Englewood Cliffs, NJ: Prentice-Hall, p.63. David J. & O’Shaughnessy, K 2001, the Effect of Layoffs on Firm Reputation, Journal of Management 2(3)156-167. Galarneau, D 2001, After the Layoff, Perspectives on Labor and Income, 13, (4): 19-29. Gibbons, R & Lawrence, K 1991, Layoffs and Lemons, Journal of Labor Economics, 9(4): 351-380. Hanaoka, M 1997, Effective downsizing strategies in Japan and America: is there a convergence of employment practices, Academy of Management Review, Vol.22, No.1, pp. 226–56. Schmidt, S 1999, Long-Run Trends in Workers’ Beliefs about Their Own Job Security: Evidence from the General Social Survey, Journal of Labor Economics, 17, (4) 127-141. Read More