Essays on Contemporary Human Resources Issues - BAE Systems Electronics Case Study

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The paper 'Contemporary Human Resources Issues - BAE Systems Electronics" is a good example of a management case study. The modern business is experiencing numerous and rapid changes internally and externally. Consequently, human resource management (HRM) is experiencing radical changes arising from the call for value addition in firms. Recurring economic downturns, coupled by increased globalization (stiffening competition) are increasingly calling for improved productivity of the workforce, requiring the HRM to make every effort and adapt their organizations, as well as the workforce, with the current dynamism and competition.

This paper seeks to present two contemporary human resource issues with the aim of presenting a recommendation in the form of an action plan. Many of BAE’ s customers are working on tightening their defence budgets, including the United States and several other nations. This implies that either the profits for the company will drastically reduce, or the company will make huge losses. The action taken by BAE System (lay off) is expected to raise a major drawback by trade unions. In case the trade unions are successful, the BAE system will have to compensate the affected employees or avoid laying them off.

Whichever the case, the company’ s profits will be affected, which will reduce shareholders’ returns. Further, the government (and the entire economy) will be affected due to a reduction in taxable income. Employees will also be affected psychologically, which will reduce their morale and working efficiency. BAE Systems should consider the various factors that will affect its business in the future, such as economic downturns, change of technology and the possibility of business expansion to decide the number employees and mode of employment to use.

It is advisable for the company to allow the system to reduce the number of employees naturally by allowing employee reduction through retirement, which will avoid the negative impacts of the proposed layoff. Introduction BAE Systems is a global company that deals with defence and aerospace. The company has its headquarters located in the United Kingdom, but its operations spread out in various countries including Australia (BAE Systems 2011). The company works along with a mission of developing a proper defence system that facilitates the establishment of peace and safety in countries.

Originally, BAE Systems Inc comprised of BAE Systems Land and Armaments and BAE Systems Electronics, Intelligence & Support (EIS). Currently, BAE Systems Inc comprises of two main sectors and five subsectors. The two main sectors include Products Sector and Service Sector (BAE Systems 2011). Under the Product Sector, there are three subsectors (business units). These include Platform Solutions, Electronic Solutions, and Land & Armaments units. Service Sector comprises of two subsectors, Support Solutions and Intelligence, and Security units. The company distributes its employees as follows: EIS has about 18,000 employees, Land & Armaments employing about 17,000 employees, Platform Solutions employing about 14,000 employees while the entire Service Sector employs about 3,000 employees.

This totals to about 52,000 employees (BAE Systems 2011). Human Resource Planning (HRP) HRP is an HRM aspect, which aims at ensuring organizational effectiveness (Kasinath 2011: 121). The main aim of HRP is to anticipate human resource movement within the organization based on employee transfers, turnovers, promotion and retirement (Kasinath 2011: 121). Human resource is a crucial organizational aspect that determines organizational performance. Therefore, the human resource department must be very keen on the selection process.

Further, the department must devise excellent human resource planning strategies to ensure maximum output from the human resource. Extensive research has been conducted on HRP, especially on its role in linking human resource policies and programs to strategic, organizational objectives (Nkomo 1987: 387).


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