Managing Personnel and Human Resources - Top Paints Limited - Case Study Example

Managing Personnel and Human Resources Name University Course Title Instructor Date The assignment is still generic. It must be specific. The assignment must specify the problems that TPL has witnessed and link these problems to theory. Then solutions must be found and then again must be linked to theory. The last version you sent was 60% good, but it needs more improvement. Please do it asap as we need it soon. Introduction Human resource forms one of the critical components of any organisation. The success of any organisation is tied on how well the management relate with its employee. This is pegged on the kind of industrial relation that a firm adopts. Employees are the epicentre of idea creation and implementation of strategic management plan of an organisation so as to achieve strategic positioning and market leadership (Denning, 2000, p. 2). Moreover, system approach to management and theory of constraint notes that an organisation is strong as the weakest link and thus, human resource management is as critical as other functional departments (Dettmer, 1997, p. 7). With the emergence of strategic human resource management, it has been realized that it is important to integrate human resource management with the overall strategic management plan of an organisation (Denning, 2000, p. 2). Currently, Top Paints Limited (TPL) is having numerous organisational problems. These problems include moving from a relative stable firm to a firm with no profit. Moreover the firm is suffering from human resource problems like low morale, low productivity, high turnover of employees and poor working relations. This paper seeks to answer questions relating to human resource management using TPL as the case study. The areas to be discussed are performance management, reward management, human resource development and equality & diversity at work place. Performance Management Performance management is one of the problems that is afflicting the performance of TPF Company due to a rigid structure that does not recognise the input of the employees and thus, killing creativity. Moreover, currently, from the observation of the firm, there is no proper communication flow that can aid in knowledge sharing to improve performance. Most of the communication is in vertical format and no horizontal communication between various departments. This is against the systems view approach to management that stresses the need for departmental coordination (Dettmer, 1997, p. 9). To increase productivity, the point of entry to solving this problem is for top level management to adopt people management strategies (Weightman, 2004, p.3). For instance, they must employ performance management practices like goal setting and employee appraisal. One approach to managing people and increasing performance has been management by objective. This approach in a participatory manner sets out what is to be achieved by employees or departments over time (Koontz and Weihrich, 2008, p.92).This objectives cannot be achieved if the performances of employees are not well managed. One way to improve performance of an individual or a department is through performance management. Performance management is the creation of collaborative effort between the supervisors and employees by aligning them with the the firm’s strategic management plan. This is done by explaining shared expectations and reducing barriers to poor performance (Bacal, 2012, p.3, 4 & 5). However, confusion that emerges is that at a time managers and employees confuse performance management with appraisal which end up making employees more resistant. While implementing performance management, TPF should embrace a participatory approach where employees are engaged at personal level, departmental level and with local union. To avoid any backlash, this procedure should be supported by appropriate industrial relations like pluralism which is non-radical and accommodative for both parties. According to Edwin Locke (1968), one of the earlier proponents of goal-setting, posits that goals formulated by individuals themselves contributes a huge portion towards motivating that person for unrivalled performance. The basis for this argument is that the employee will try to attain goals set out and even if they are not met, the employee shall have made a tremendous effort in achieving them and thus, contributing to improved performance. Precisely, this is what performance management aims at. Moreover, Brim (2012, p.3) notes that human beings performs well when they have goals and objectives set out for them. On the other hand, expectation theory looks at performance in relation to anticipated satisfaction of valued goals set by them. According to Victor Vroom (1964), people adapt their behaviour in certain way so as to attain desired goals. The essence of these theories is based on participatory approach to formulation of the desired objectives by having attainable, specific and measurable objectives. This would make the employees part and parcel of the procedure. This collaborative approach can only be realized with a properly formulated organisation structure that has leadership which motivates, sets out vision and creates the need for its people. This is what TPF human resource and other top level management should take in to consideration. Goal-setting theory success in the organisation is reliant on how the management treats objective setting process in the organisation (Bacal, 2012, p.8). Setting objectives is a sub step in planning (Koontz and Weihrich, 2008, p.82). This should be done with short and long term focus in mind. Moreover, in this kind of approach, vertical and horizontal information flow with guaranteed feedback is critical. In a nutshell, the essence of goal setting is to link human behaviour with organisation’s vision. In implementing goal and objectives, the TPL HRM should ensure that goals set out are achievable and measurable over time. This is called smart objectives. The company should make this part and parcel of the organisation core belief. With time they system will be entrenched into the organisation. Thus, TPL should in first step review their strategic plan, strategic human resource so that they be in sync with desirable practices with personnel and human resource management. This once done, they will be able to overcome issues related with employee performance. Moreover, one critical bit in shaping this procedure is to invest in top level management who are able to create a vision and enabling environment in the organisation so that employee can be source of new ideas. Hence, need for top managers with soft/people skills/ interpersonal. Reward Management World wide, the trend is to pay people according to their skills and contribution. Moreover, people work expecting to be rewarded and the reward should be based on performance, market value, skill, competence and not on standard rates. This kind of normative practice in HRM is one of the lacking ingredients in TPL. Reward should be based on performance appraisal where employee’s contribution to the firm is graded. Performance appraisal forms one of the subcomponent of performance management (Armstrong and Murlis, 2007, p. 99). This approach enables management to attract and retain employees so that they can contribute towards achievement of organisational goals (Armstrong and Murlis, 2007, p. 111). In TPL Company, the rewards are flat according to job groups and not on performance and contribution. This has contributed to good employees to leave as they remain with non-ambitious ones. As a practice in HR, the firm should review their payment and remuneration package of their employees so that they can attract and retain best brains that are willing to contribute to the organisation’s success. This is because they will be having internal drive. Reward management is based on motivation theory whereby one feel encouraged when they are rewarded for their achievements. This reward should be fair and consistent. There are numerous theories that have been used to explain concept of internal drive and human action. Theory X and Y theory advances concept that there are two classes of manager. The X managers view employees as skivers and those in need of close supervision, while Y managers who are optimistic view employees as those in need of motivation so as to achieve desired goals (Bernstain, 2011, 591). According to organisational theory, bias perception based on stereotyping is dangerous for an organisation. Moreover, leadership driven management should be able to inculcate enabling environment that motivates and directs employees rather than create fear and suspicion. The next theory is hygiene theory. This construct is built on premises that discourage or encourage employees (Bernstain, 2011, 592). These phenomena are called dissatisfies and satisfiers. The next grouping is of expectancy theory that is based on expected rewards. Concepts that explain how people are motivated to perform when rewarded or not rewards include social learning theory and cognitive learning theory. Cognitive theory underlying assumption is that people interact with their environment based on how they perceive and interpret it. In a precise term, people build an internal (cognitive) map of their external (social) environment, and these perceptions determine their behaviour (Restle et al., 1975). Social learning theory acknowledges the fact that behavioural patterns are acquired by links or contingencies established between the behaviour and its consequences. Further, it acknowledges that, when behaviour is followed by desired results (reward), that behaviour is ‘reinforced’ (made more likely). On the other hand, when behaviour is followed by undesirable or aversive consequences the behaviour is made less likely (Coleman, 1994). Thus in this case if good performance is rewarded then the person is likely to keep it up and if not he is likely to give up or quit. In implementing reward management strategy, salaries should be capped according to companies overall revenue otherwise the firm might find itself directing most of the income towards recurrent expenditure rather than capital investment. Apart from investing in reward, to reduce high turnover of employee and reduce the level of being disfranchised, the management of TPL should invest in leadership and motivation to create an environment that make them to be attached to the organisation. The leadership should be one that sees employees as those in need of motivation to succeed. This will enable not only to attract but, also to retain their best and those who they have developed. In addition, to curtail the challenges, employees should be oriented to feel that in the company payment will be done according to one contribution and not based on bonuses for nothing done. Moreover, the firm has to clearly outline promotional procedures and fair work practices that outline personal growth and rise of the employees. Human Resource Development TPL Company has been grappling with since employees that are not at par with current development. This means they have redundant employees who cannot be creative and innovative in their operations. Most employees in this firm are prone to repetitive accidents which are from the same causative agent. This means there is something wrong with the training they are receiving in relation to human machine interaction. Moreover, in attempts to do refresher course the firm uses in effective and expensive procedures like off-site training. Lastly, most employees in this organisation are resistant to change. Any organisation that cannot respond to change is likely to fail. Precisely, this is the current situation in TPL. The importance of human resource cannot be over-emphasised. Apart from the training that one received while pursuing academic qualification, it is important for organisation to train its employee and expand their human capital on the job and through refresher courses. This allows them to grasp new concepts in their field of profession and be engaged in domestication of these new ideas for the organisation. In a nutshell, this allows employees to improve their performance and enhance their personal development (Joy-Matthews, Megginson and Surtees, 2004, p.58). There are numerous logical constructs that explain how people learn. Cognitive theory derives its core argumentative elements from the field called social cognition. The underlying assumption is that people interact with their environment based on how they perceive and interpret it. In a precise term, people build an internal (cognitive) map of their external (social) environment, and these perceptions – rather than an objective external reality – determine their behaviour (Borum, 2004, p.13 and 14). Hence, if the TPL cannot train its employees on how they expect them to operate, they are likely to face numerous failures. This is because each employee will be doing what he/ she feels is right and not what is aligned to the organisation’s vision. The greatest underpinning for involvement in this kind of management is to ensure that human resources are aligned to the organisational requirements by having planned learning activity. Moreover, human resource development can be used to initiate change within the organisation. Apart from the above, human resource development can be used as an avenue of modelling organisation’s capital requirement into their own liking. The essence of this is to make vision and human capital to be in sync (Joy-Matthews, Megginson and Surtees, 2004, p.58). The human resource development should be implemented with reward management since if any organisation like TPL develops its human resource and cannot reward them then they will lose their best employees. The next solution to solving human development is based on addressing resistance to change. As noted earlier, most employees view change with suspicious eye. Change in organisation is inevitable if an organisation wants to stay afloat. However, these changes in work place in one way or another affects the employees more than employers due to their reliance on their employers. In order to avoid these unnecessary friction caused with change, there is need to plan for change and place communication at forefront. This can only be partially achieved if the firm adopts pluralistic approach in solving employment relations (Denning, 2000, p. 2). The best way to introduce change in absence of extreme factors is through planned and progressive approach. Equity and Diversity Making a diverse workforce is not an easy venture. This is because company like TPL first focuses on merit and performance. Moreover, population dynamics makes it difficult to realize this need. A diverse work force brings with itself a diverse idea that if well tapped by an organisation can help them overcome challenges afflicting them. Having a right mix of people in place makes organisation cosmopolitan and attractive to others. The major aim of organisation like TPL Company is make profit, offer value to their clients and gain market leadership. This then means that the company should recruit employees irrespective of their gender, race, disability or religion (Konrad, Prasad and Pringle, 2006, p. 482). As a strategy, TPL should encourage those from challenged background and minorities should be encouraged to apply when opportunities exist. For the case of people who have physical disabilities, the firm should have provision in terms of physical infrastructure that is friendly to these people. Conclusion Human resource management is an integral factor in any organisation for it to realize higher returns in their investments. One significant factor is that human capital should be treated as part and parcel of the organisation. Apart from investing in management that is based on technical skills, organisation should also source for managers who have competent soft skills. Technical skills are used to ensure organisational efficiency while soft skills are used to manage people, managing people entails leading, motivating and ensuring team work so as to achieve organisations vision. For an organisation like TPF company to overcame their challenges, they need to roll out strategic human resource planning that adapts to the organisations overall vision. One thing that should not be mistaken from start is that performance management should not be treated as performance appraisal. However, performance appraisal should be treated as part of performance management. In addition, the firm should invest in reward management so that employees feel urge to work hard and also for them to retain and attract high performing employees who are not are able to drive organisation to adapt to changing market situations. Finally, TPL should formulate way to improve their capital at disposal so that they can conform to their standards and drive that required change. Bibliography Armstrong, H. and Murlis, M. 2007. Reward management: a handbook of remuneration strategy and practice. London: Kogan Page. Bacal, R. 2012. Performance management. New York: McGraw-Hill. Bernstein, D. A. 2011. Essential of psychology. Belmont, US: Cengage Learning. Borum, R. 2004. Psychology of terrorism. Tampa: University of South Florida. Brim, R. 2012. 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