Human Resource Department at Icloud Company - Case Study Example

RМ Simulation Rероrt By Name Institution Course Tutor Date НRМ Simulation Rероrt Icloud Human Resource Management Simulation Report The newly created Human Resource Department at Icloud Company has the initial intervention in human resource management as the process of implementing policies and programs that levels the employee's needs and the company needs. At the same time, it is geared towards forming a profitable company that each employee will be proud to work in. The most crucial part in the function is the ability to manage the budget allocated for specific purposes effectively with priority given to the most pressing needs. The major goals for achieving a well-developed working place include increasing morale, reducing turnover, diversity, productivity, safety and quality. Mahdavi (2011) mentioned that among the strategies employed to accomplish the set goals included creating a well-organized grievance system and performance appraisal to increase morale. He noted the need to have a Grievance office. The office provides for a specific, precise framework for dealing with the arising issues. Therefore, increasing the morale of workers since they are always assured that they have an opportunity to raise their concerns in case of a misunderstanding or upon noting an unfair treatment from the others. Such opportunities give employees confidence and sense of job security, thus enabling them to exploit their full potential without fear. The decision to form a Grievance Office is strength to the company (Mattare 2013). Despite the fact that funds will be used to develop this program, it goes a long way in settling disputes that could otherwise erupt to cause chaos, mistrust and lack of cooperation that is detrimental to the growth and profitability of the company. The company’s projected turnover as estimated in the projected resignation graph called for the need to curb it. To do so various modalities like internal training and promotions were effected so as to prevent a turnover. The graph provides the statistics of the estimated rate of resignation if the operations in the human resource department remained as they were. Therefore, the decisions to come up with the strategies to curb the turnover rate are developed from the graph provided. As it is seen, the rate of the semiskilled workers turnover is quite high unlike the more skilled and the higher-level workers. Therefore increasing the training of the semi-skilled workers on job is a major factor in deterring the increased turnover of the employees (Ployhart & Moliterno 2011). Apart from the training needs, various compensation packages are used to increase the morale to work hence increasing productivity and at the same time reducing the turnover rate. Among the key areas of emphasis is on the benefits of the employees to help in the management of their arising needs (Guest 2011). Below is an estimate of the benefits in the fourth to eighth quarter hence showing the fact that by increasing the benefits can be quite useful as a measure of retaining employees hence reducing the cost of recruitment and training of new employees. With proper training, the internal employees suit the company for promotion to managerial positions. It is projected as a long-term way of reducing expenditure on hiring people from the outside market because the hiring process costs a lot more (Gelade & Ivery 2003). However to avoid hiring people to replace the promoted one, the human restore department will ensure increased productivity that comes in with better skills. Hence, the training of the internal employees to take over the managerial departments or even betters their skills in service delivery. At the same time various programs are introduced to improve the morale of employees and productivity at last. Key among them is the earlier mentioned proper grievance channels, employee participation, performance appraisal and orientation of the employees. The chart below shows the projected expenditure over the fourth through the eight-quarter. Grievance solving process and orientation are among the cheapest programs to put in place yet they are the most crucial parts of human resource management (Ployhart & Moliterno 2011). For instance in the company, promotion was driven by C.E.O’s preference. That, therefore, saw the less hardworking employees receive the promotions that were not due to them while the deserving ones are left out. The grievance is an office that is formed to listen to the needs and the concerns of staff members. Hey is the sure way of solving problems between workers with the management or among themselves. Therefore coming up with a section in the management of the human resource is of great essence and very crucial. There are set funds to set up an office and educate the workers on the process of forwarding a grievance(Truss et al. 2010). Once everything is put in place, then the process of receiving grievances is set to begin. Among the key issues that call for the office are the issues with salary discrepancies or poor management subordinate relationship. Performances appraisal is the key modalities used to promote the employees and at the same time provide a feedback on the employee’s competences. Since there is no any method of performance appraisal in the organisation, as the head of human resource department, the priority in curbing the issues is developing a performance appraisal too. After that, there is need to train n the employees on the process of performance appraisal. The standards of performance and productivity are stipulated to the employees hence providing them with a baseline to refer with. All the procedures are both time consuming and affect the rate of productivity of the company. Therefore calls for a systematic training of the employees to ensure that the productivity of the company remains. There are various methods of performance appraisals in place. Therefore, it is important to determine what kind of appraisal is needed to meet the needs of the company at hand. For instance, the self-appraisal is much appreciated for it gives the employees the opportunity to evaluate themselves and realize the faults they made and need improvement. For increased performance and productivity, there is a need to orient the employees both new and the already existing ones in the process of the company. The process of orientation involved the indoctrination process that brings new employees on board and familiarises them with the operations of the company. The orientation process apart from increasing the productivity of the employees, it improves the comfort of the employees at the working place for the fact that they know their environment perfectly well. The wages are the key motivators of the workers. Harmonization with the other companies is very important to avoid efflux of the employees to a better paying company. To do so there is need to study the community average wages offered in the particular companies that are potential employers of the organizations employees. For instance on our company, there is slightly low payment of the workers compared to the average payment of the other organizations in the community. However, the budgetary allocation can allow for ten percent increment that will g along way to bright the gap and surpass the threshold. The management has allowed for the ten percent increment. It therefore becomes the priority for the fact that finances are motivators of most employees. Forms the graph above, there are trends in the wages increment. The wages will be increased steadily to the optimal level. For the fact that the increment is calculated in parentages, the employees in the higher level will definitely receive more compared to the others in the lower level who will receive lesser amount. However, the amount complies with the percentage of the current salary as agreed on. However, the strategies and the decisions made all depend on the budgetary allocation of the human resource department. Therefore, it becomes the guiding principle to avoid stalling of special and more important activities in the final quarter of the year. With that in mind, there had to be a proper allocation of the funds on each of the activities mentioned above as stipulated below. However, there is over expenditure in the quarter, which means there will less activities in the second and subsequent quarter to meet the deficiencies. Human resources information system refurbishment is crucial. The department of information and technology contains the essential data that is used to make crucial decisions in the human resource management. Therefore the decision to improve it important, in order to promote employees, determine training needs or punishment on braking the rules, becomes easier with the more sophisticated information system Budgetary allocation Total Annual Budget $1,600,000 Year-to-Date Expenses $1,412,741 Quarter 8 Expenses $365,000 Staffing and wages   5 4 3 2 1 New Hires 0 0 0 0 0 Promotions 0 0 0 0 Quarterly Increase $0 $0 $0 $0 $0 Target % of Females: 30%   Target % of Minorities: 30%   Budget Total Annual Budget: $1,600,000   Year-to-Date Expenses: $1,412,741   Quarter 8 Expenses: $365,000     Benefits Decisions Holidays: 2 additional Vacation/Personal/Sick days 3.21% Pension: Employer Sponsored Pension-Starter 3.40%   Health Benefits: Tier 2 Health Care (lower deductible) 3.27% Dental Care and Legal Services 0.10% Term Life Insurance and Eye Care 0.20%   Other Benefits: Tuition Reimbursement 0.80% Net Benefits Change for Quarter:   0.00% Training Decisions New Hires and Promotions $80,000 Training for Managers and Supervisors $80,000 Safety & Accident Prevention Program $80,000 Establish and Maintain Quality Program $80,000 Programs Decisions Employee Participation $12,000 Grievance Procedure $6,000 Orientation Program $3,000 HR Information System $11,000 Performance Appraisal System $5,000 Affirmative Action Program $7,000 Survey Purchases Training Survey $1,000 Conclusion The budgetary allocations provide the basis for implementing various interventions. At times, Human Resource Directors can be unable to perform all the functions because they have to prioritise on the most pressing needs. Therefore, before any decision made, it is important to have a budget of all things intended to be done to ensure other plans do not stall for the fact that the fund went to settle a different need. References Gelade, G.A. & Ivery, M., 2003. THE IMPACT OF HUMAN RESOURCE MANAGEMENT AND WORK CLIMATE ON ORGANIZATIONAL PERFORMANCE. Personnel Psychology, 56, pp.383–404. Available at: http://www.redi-bw.de/db/ebsco.php/search.ebscohost.com/login.aspx?direct=true&db=buh&AN=10071437&site=ehost-live. Guest, D.E., 2011. Human resource management and performance: Still searching for some answers. Human Resource Management Journal, 21, pp.3–13. Lepak, D.P. & Snell, S.A., 1999. THE HUMAN RESOURCE ARCHITECTURE: TOWARD A THEORY OF HUMAN CAPITAL ALLOCATION AND DEVELOPMENT. Academy of Management Review, 24(1), pp.31–48. Mahdavi, A., 2011. The human dimension of building performance simulation. … of International Building Performance Simulation …, pp.14–16. Available at: http://ibpsa.org/proceedings/BS2011/K3.pdf. Mattare, M., 2013. Human Resource Managemnet in Microenterprises: Gateway for Success. The Coastal Business Journal, 12, pp.20–33. Ployhart, R. & Moliterno, T., 2011. Emergence of the human capital resource: A multilevel model. Academy of Management Review, 36, pp.127–150. Truss, C., Mankin, D. & Kelliher, C., 2010. Strategic Human Resource Management. Human Resource Management, 14, pp.365 – 382. Available at: http://usir.salford.ac.uk/9191/. Read More