HR Policies and Activities - Torrens Company - Case Study Example

HR Policies and Activities Student’s Name Subject Professor University/Institution Location Date Opportunities Torrens Transit loyal commuters are likely to continue to use its services Gaps exist in transport market that can be filled with new services, such as elderly adults customized buses The company can reach more commuters via its technological-based services Threats Commuters may tire of single mode of transport and it may need to keep services fresh Larger competitors such as electric train and tram that are under construction and supported by the government Introduction This paper revolves about the Torrens Company that acts as the case study. It seek to explore the company’s environment Starting from the opportunities and threats that surround it, to the strategy that it need to apply in its area of operation and beyond .The human resource policies on matters to do with job and work design takes a central place in the paper. In every case, the paper point at the gaps that the manager need to be fill if the company have to excel in all these areas Torrens Transit OT The environment for Torrens represents overwhelming opportunities. There are challenges the firm can still meet successfully. The Table 1.0 above illustrates OT of the company that shows the markets highlighting Torrens opportunities and threats. In addition, building strong relationships with commuters should help thwart the competitors. Business Strategy Torrens need to come up with a business plan set growth and inform employees of its current status as well as its direction. The focus should be to attain greater-than-anticipated demand for its services. Research has shown that Torrens market increase in population of elderly and low-income youth would raise the demand of public modes of transportation (Freund & Vine 2010). In turn, Torrens will need to explore the opportunities and at least come up with a five year plan to increase distribution, offer new services and win new customers. Torrens Transit Mission and Goals Torrens Transit’s mission should be to be a leading transport company offering personalized, efficient and to customer expectations public transport services. Its services should inspire people to use its services more often. In the next five years Torrens can seek to achieve some financial and nonfinancial goals Financial Goals On financial objectives or goals,Torrens need to obtain finance to expand transport services capabilities.This will increase distribution and introduction of new services to make the services better.The company needs to set a target and work towards an Increase of revenue by at least 40 per cent each year .The other thing that is of great importance is to donate at least $15,000 annually to local programs like conservation Nonfinancial goals A number of nonfinancial goals need to be prioritized.There is a need to introduce new services- elderly adults’ comfortable buses.This will give Torrens human value and increase its competitiveness. The company still have to consider entering into new geographical markets beyond metropolitan Adelaide in order to capture a wider market. Developing a successful software, Internet site is paramount to the success of the company. This will serve to maintain strong services with the customers. Of great importance still is that the company need to adopt a social corporate responsibility by developing specific program with an aim of helping the community and build its reputation. Situational Analysis -SW Table 2.0 below illustrates SW of the company that shows the markets highlighting Torrens strengths and weaknesses. In just five years, Torrens can build impressive strengths and look forward for new opportunities. With dedicated directors and managers, growth of brand-loyal customers, human resource management and sound financial management can place the company in a right position to grow. Torrens has to guard against service myopia (failure to recognize its business scope) as well as quality slippages. As the company sets its plans for new services and expanded technology services and HR management, it has to guard against competitors who can take a great share of customers. Strengths Torrens Transit founders understand its target market and services Torrens has achieve distribution in major routes in Adelaide with quick acceptance The company has great potential to grow with little debt Torrens works as a single company ensuring maximum quality control Weaknesses Torrens Transit managers may lose sight over its potential scope of service A limited number of commuters around Adelaide are satisfied of Torrens Transit brand The company has limited cash flow due to increase costs of fuels, salaries and carbon tax Torrens Transit working as a single company can experience limited capacity if the demand increase Torrents Transit is working in a market with quite a number of external factors that poses either a major threat or opportunities that can be leveraged through its internal capabilities. First, socially, people’s preference to use personal cars has decreased the use of bus services in South Australia. The general sense is that bus services are not up to their expectations even when it is the most preferred mode by the government due to pollution control and reduced expenditures. Torrens can embark on staffs’ capacity building to design better services. Secondly, two technologies including; the Metrocard service and installed GPS in vehicles offers more reliable, efficient bus-location tracking and payment making the services better than it has been the case. In turn, Torrens need to leverage it, maintain and improve it accordingly. Thirdly, there is a challenging economic circumstances for transport industry in general and Torrens in particular. Low-incomes earners particularly the youth will use public transport and raise the demand. Car manufacturers have quitted Adelaide and that will raise the cost of importing vehicles increasing purchasing price and leading to more demand for public transport. However, Torrens has faced a demand from Transport Workers Union to raise its salaries with strikes that further affects its revenues. Fourthly, environmental circumstances poses future challenges to company viability and continuity with the government pushed towards new public infrastructure like underground train and electrified tracks due to doubt on bus services. Fifth, the political circumstances have had some spotlight on bus services which have negative implication in the market. Bus running late, bad behaved drivers, poor vehicle maintenance and poor quality services are major issues that make bus industry the most criticized service. In addition, bus fare rose with approval of Carbon tax by SA Parliament. Sixth, ethically, the public has very bad opinion on bus services. However, there are three major companies and Torrens Transit can standout by managing its staffs during service delivery. Finally, demographic changes and forecast in Adelaide points of increasing retirement age population and due to reduced ability to drive due to age, upgraded transport network will be a preference for them. HR strategy, policies and practices Strategic Human Resource policies can contribute to a firm’s performance (Lengnick-Hall, M. L., Lengnick-Hall, Andrade & Drake 2009). Torrens Transit is undergoing changes as a result of new technology application, changing government regulations as well as fundamental changes in work and employment relations within the company. There is an increased demand for transforming HR practices from a focus on functional role to strategic role for Torrens Transit. Torrens Transit operating in Adelaide, South Australia, is currently experiencing quite a number of HR issues directly resulting from changing world demands for better transport services, capable workforce, subsequent growth of elderly customers and fierce competition from government supported modes of transport to be launched soon. The next order in the company will be to address the image problem. The company’s poor image has come up again and again regardless of consideration of other threats and weaknesses. It appears like the company is not viewed as attractive not only by commuters but also its employees. For Torrens Transit, it a question of strategic implications in every aspect of business and thus, the first step needed is to make sure that human resource (HR) management will be taken as a strategic partner rather than just a supporting function. This situation pushes Torrens Transit to assume a strategic position for effective deployment of human resources strategies to address significant issues related to services, costs, skills shortages and benefits. Job and work design is a HR practice that can ensure that drivers fit in the company’s jobs and organizational structure. One major weakness that faces Torrens Transit has been lack of transportation system plan. Eventually, the company has been weak in work allocation. Even if there is 400 staff that managing a fleet of 250 buses, without a work plan, the company cannot achieve optimum outputs from its staffs. According to von der Gracht, Gnatzy, Ecken & Darkow (2012), available source of data indicate some defining features about transport workers in informal sector. Poor work planning can be a source of boredom, regret and poor estimations which affects customers experience as drivers can be uncooperative due to fatigue. Living and working conditions are at survivalist end of spectrum. In turn, there is a growing need to offer work-lie balance (WLB) programs in Torrens Transit. The objective of WLB is to safeguard the staff’s health and wellbeing as well as providing safe working environment. To make such WLB programs effective, the company HR manager should attempt to investigate effective programs from staffs’ perspectives. In turn, it would be possible to design programs that suit the changing lifestyles of staff and needs of in the company. One of such programs is shift work where drivers and conductors are assigned a maximum of hours a day for instance 8 hours after which the pair carries on with operation till the close. The success of transportation operators depends decisively on qualifications and quality of its employees (Pera 2010). This is prerequisite that will increase in future and considering it as requirement for success, Torrens Transit ultimately face great difficulties today. There are some problems that are directly related to the how the staffs offer services to commuters. A social issues identified in this region is increased complaining by commuters of the bus services quality. Similar political concerns constantly features with issues like running late, drivers’ bad behaviors and poor vehicle maintenance being on the limelight. In such a situation, Torrens Transit requires a change in company’s culture which through synergy among its managers and staffs. The company’s executives need to ensure plans to improve its image as a top priority. The commitment for image restoration and development should come straight from top executives, through the managers to the staffs. Qualified personnel will be its determining factor not only for the success but also for survival of the company. The consequences have been dire with damaged reputation making bus services unattractive. Damaged reputation is an adverse factor that can have long-term and precarious results to the sector. Training and development is an effective HR strategy that can promote the necessary context in for the company and shape its services. Training would involve identifying the issues with the staffs and engaging them in a step by step diagnosis of the problem, consequences and the ways out. It develops a viewpoint where staffs mindsets would change towards offering coordinated and efficient services. In developing staffs, the focus should be to create a dynamic workforce that is able to solve emerging problems, anticipate goals and adopt better ways to make the services more acceptable like the knowledge on how to use innovative technology. Eventually, staff skills will develop and become easily applicable in work situations. Torrens Transit has 400 staffs managing a fleet of 250 buses and that shows they already have the right number of people who can efficiently manage the fleet. However, one HR strategy that might be lacking is workforce planning and that makes it hard to deliver the skills and tasks needed. In addition, it is a fact that the industry does not appear attractive enough for people to apply in its position. However, there can be a turnaround if the company’s managers are capable in remedying such existence-threatening situation and simultaneously open door to the company’s future. Workforce planning will involve application of core process of HRM to shape the organizational strategy in ensuring the right number of staff with the right skills and doing the right job. Eventually, Torrens Transit can drive both the short-term and long-term objectives. There are diverse and extensive activities that can vary with situations. The activities under workforce planning can encompass HR manager in Torrens Transit setting flexible working. The manager needs to have scheduled duties where drivers can choose the right shift to work at. Technology application has become part of transport sector and in turn, fixing technological devices will also require the manager to carry out skills audit and skills gap analysis (Montreuil 2011). In turn, it will be easy to improve staffs’ skills by scenario planning. For instance, the staffs that are efficient in use of technological devices should be assigned the peak hours to ensure that customers are served fast and to utmost satisfaction. There are quite a number of issues to be dealt with like labour demand, supply forecasting and succession planning. One risk that the company faces is difficulties in having employment contracts with staffs. In turn, succession planning is vital part of HR roles where in case a driver leaves, the company will have prepared another driver for replacement. That can minimize costly outsourcing or hasty recruitment. Diversity management is a relevant business strategy and can easily be applicable in Torrens Transit. Good staffs are scarce resource and that has been acknowledged as Torrens Transit poor reputation has come about due to poor services that are offered by its staffs. A company’s workforce needs to be more than just a mere head count or full-time equivalents (von der Gracht, Gnatzy, Ecken & Darkow 2012). For performance to be raised, HR manager will have to ensure that the workforce comprise of people with wide range of soft and technical skills as well as unique perspective on employer and the work. In most sectors, diversity is on the rise and Torrent Transit need to consider having employees of different gender, ages as well as cultural background working together. Eventually, that will welcome development as mixed teams always perform better. Diversity management is a HR strategy that will impact on organizational culture where employee and drivers can have new orientations in learning what the company targets and strategies. Torrens Transit can embark on attracting more women in a male-dominated transportation company even though that would not be easy. If it succeeds, it will access to rich labor pool. Gender and cultural diversity pay off in different ways. For example, it can spark creativity which enhances innovation. Most sectors believe that, managing diversity continues to be a marginal issue in logistics and transportation (Moghaddam 2009). If Torrens makes sure that it has included women in its top roles, it can increase its profit. Torrens Transit services a cosmopolitan working environment and that should translate into popularity with people who seek jobs. However, the company is confronted with a less ideal image. It is clear that Torrens is faced with myriad of external challenges from regulations, customers’ preferences and technologic changes. However, that should be the starting point for performance management. To succeed, they have to capitalize on their advantages. First, they should try as much as possible to win the best employees. Human resource is one of the dynamic assets that can drive company’s objectives. The staffs that interact with commuters everyday need to have the right perceptions about the work. Work in buses tends to be associated with unpleasantness and bad working conditions making it less attractive career path. However, Torrens managers should aim at designing the right working conditions in order to have satisfied employees. Secondly, Torrens need to build a strong employer brand and that will entice potential staffs to aspire to work with the company and subsequently deliver with diligence. Nowadays, employees want to work with a company that has strong values. There are ways to inspire the staffs such as continuous communication, appreciation and support to show them that you are part of the work process (Bearth 2011). Basically, most employees are concerned with salary and career development. Eventually, Torrens needs to improve its recruitment, compensation and development strategies. For Torrens, training and development of young staff and adapting its working conditions to the needs of older workers means investments but this is absolute must. One threat highlighted was staffs’ strike due to low pay. The company needs to ensure that it gets compensation levels rights across the organization and for both men and women. Compensation has to include more than just wages and should also add benefits and working conditions. In addition, individual objectives of staffs should be aligned with the overall company’s strategy. Eventually, that will increase productivity while making workers feel that they share in organizational success. Another important factor to be considered in Torrens is keeping talent on board where skilled drivers should have enhanced opportunities to advance and improve working conditions. If the current workers are satisfied, the company can improve its employer brand. Staffs perceptions are important elements to be considered in building employer brand. Talent management is important for Torrens Transit and more so when considering that it is faced with government restrictions of bus routes and competition which will soon be faced once infrastructure that is under construction for tram network and underground train are completed. There are identified weaknesses facing Torrens one among them having employee that lack ambition and refuse new challenges and changes. In its key types of positions, changes are impacting on different jobs and in future, some key positions will require new skills and thus adapt training programs accordingly. For the drivers, commercial driver license, technical competencies, ability to work alone and e-skills will be needed skills in the company. One major reasons why Torrens has to have effective talent management is that, transport sector is changing and as the government moves ahead to control pollution, traffic and congestions, buses might become an option for many commuters who will be restricted to use their personal cars. It is also noted that, elderly adults are increasing and the demographic trends also proves that the population of young people is on the rise with lower incomes and thus difficult to buy personal cars. Torrens needs to ensure that staffs and drivers have skills to use navigation systems and can change routes while on the road to attend the routes as per demands. New technology is launched and its use will only be effective if the drivers are skilled to take it for their navigation assistance, traffic management and use of e-skills and technical competencies to ensure customers’ satisfaction. In conclusion, transport is all about people and the challenges faced by Torrens Transit are demonstrated with absolute clarity. The success of the company thus depends on qualifications and quality of its staffs and it is seen as a prerequisite that will keep on increasing in future. Considering that currently, the company is faced with difficulties in deploying qualified personnel, its survival, continuity and success will only depend on how well it will apply HR strategy, policies and practices. If effectively applied, Torrens Transit will remain viable in Adelaide and get a considerable share in the market despite the competition. References Bearth, D P 2011, Transportation Officials Urge National Effort to Attract Next Generation of Industry Talent Transport Topics, (3965) Freund, K, & Vine, J 2010, Aging, mobility, and the Model T: Approaches to smart community transportation Generations, 34(3), 76-81. Lengnick-Hall, M L, Lengnick-Hall, C A, Andrade, L S, & Drake, B 2009, Strategic human resource management: The evolution of the field Human Resource Management Review, 19(2), 64-85. Moghaddam, F M 2009, Commentary: Omniculturalism: Policy solutions to fundamentalism in the era of fractured globalization Culture & Psychology,15(3), 337-347. Montreuil, B 2011, Toward a Physical Internet: meeting the global logistics sustainability grand challenge Logistics Research, 3(2-3), 71-87. Pera, R (2010) Promoting greener transportation systems for employees in industrial areas: Service design and communication strategies Environmental Quality Management, 20(2), 49-66. von der Gracht, H, Gnatzy, T, Ecken, P, & Darkow, I L 2012, Transportation & Logistics 2030 European Foresight Platform, 60(39), 59. Read More